HONG KONG: Incoming Federal Reserve chair Kevin Warsh faces both a tough environment and a "difficult boss," Standard Chartered CEO Bill Winters said on Tuesday, pointing to political pressure on Warsh to cut rates even as inflation remains high."Inflation is stubbornly high and unlikely to come down, but he's got the political environment (in which) he will be criticised if he doesn't cut rates," Winters told reporters in Hong Kong."He has got a difficult boss but you know he (Warsh) is a serious guy."Warsh will be sworn in as U.S. Federal Reserve chief on Friday by President Donald Trump. Trump chose Warsh to head the U.S. central bank following the end of Jerome Powell's term.Also read | Standard Chartered plans to cut thousands of jobs in AI pushU.S. CPI increased 3.8% in the year to April, the biggest annual increase in three years, reflecting rising energy prices following the U.S.-Israeli war with Iran.Some Fed policymakers are already concerned about high inflation and want to use the Fed's policy statement to signal that rate hikes, not rate cuts, may be coming.Also read | Iran war saddles global companies with $25 billion bill and countingTrump has repeatedly called on the Fed to cut rates dramatically. Market pricing currently shows roughly a 60% chance the Fed raises rates by year-end.
Incoming Fed chair Kevin Warsh has a difficult boss and a tough job ahead, says StanChart CEO Bill Winters
As Kevin Warsh steps into the role of leading the U.S. Federal Reserve, turbulent waters marked by soaring inflation await him, says StanChart's Winters. While there's a palpable push for interest rate reductions from political circles, some members within the Fed are advocating for hikes instead.
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