Newly appointed Federal Reserve Chairman Kevin Warsh is set to make his first significant remarks on inflation, unemployment, and the economic outlook at a press conference on Wednesday.
Warsh, who succeeded Jerome Powell a month ago, has been outspoken about the U.S. central bank's balance sheet and the need for less focus on interest rates.
This press conference, following the Fed's June 16-17 policy meeting, would allow Warsh to address economic issues and outline his plans for the central bank's response. 1-Take On Inflation Investors will be watching how the Fed's new leadership evaluates the inflationary effects of tariffs, rising oil prices, and signs that easing housing costs may no longer be helping to curb inflation.
Christopher Hodge, chief U.S. economist at Natixis CIB Americas, told Reuters, "I don't think he will preclude cuts, but the onus will be on the data to prove that the energy shock is past us." The Fed is widely expected on Wednesday to hold its benchmark interest rate steady in the 3.50%-3.75% range, where it's been since December, a shift from earlier expectations for continued rate cuts as inflation's progress toward the Fed's 2% target has stalled.
Read Also: Hormuz Energy Shock Lifts Producer Inflation To 6.5%, Highest Since December 2022 (UPDATED) 2-Policy Guidance The new Fed chief has criticized some of the central bank's communication tools, including the widely watched "dot plot" of rate projections, though changing it would require broad support from policymakers.
