President Trump is set to swear in Kevin Warsh as the new Federal Reserve Chair at the White House at 11AM on Friday, handing Warsh a four-year term and ending Jerome Powell's tenure at the helm of the world's most influential central bank.
Warsh, a former Fed governor and Morgan Stanley investment banker, has long been considered a hawk on inflation and a critic of the Fed's post-2008 balance-sheet expansion. His appointment signals a potential shift in the Fed's communication style and, depending on the economic backdrop, possibly its rate path — though the Fed's formal independence means any policy pivot still requires consensus among the Board of Governors and the FOMC.
Markets will be watching Friday's ceremony closely for any early signals on Warsh's near-term priorities, particularly on the pace of quantitative tightening and the Fed's stance on rate cuts heading into 2025.
WatcherGuru
WuBlockchain