Kevin Warsh shakes hands with President Donald Trump after being sworn in as the new head of the US Federal Reserve, at the White House in Washington, DC on May 22, 2026. (Photo: AFP)
WASHINGTON - The US Federal Reserve is expected to hold interest rates steady at Kevin Warsh’s first meeting in charge of the central bank, with rate increases potentially on the horizon to combat surging inflation.Federal Open Market Committee (FOMC) policymakers began the second day of their meeting on Wednesday morning, with a decision to be announced at 2pm local time (1am Thursday Thailand time).
Republican President Donald Trump has pushed an unprecedented campaign of intimidation to pressure the Fed to lower interest rates.
However, US inflation came in at a three-year high in April, fueled by Trump’s war on Iran, which saw energy prices skyrocket, with knock-on effects on a range of sectors.
With the labour market firming, Fed policymakers flagged an increased concern about inflation, and rate hikes — not cuts — are potentially in the pipeline to tame raging prices.
