Federal Reserve Chairman Kevin Warsh is unlikely to announce a rate hike at this week’s meeting, for at least three reasons: his personal skepticism, the risk of undermining his task forces tackling structural questions, and delicate political considerations with the Trump administration. The FOMC is divided, with three or four of twelve voting members ready to call for an immediate increase, while investors see a nearly 40% chance of a rate hike this week according to CME FedWatch. Warsh has abandoned forward guidance and created task forces whose reports are expected in late 2026 to address questions about artificial intelligence and inflation in a lasting way. He will eventually need to deliver the first rate hike of his tenure, but has strong reasons to hold off a little longer.
Source: Read the original article
