Warsh Charts His Own Course On Rates As Markets Watch The Fed Shift |
Many eyes and ears focused on Kevin Warsh on Tuesday, April 21, during a confirmation hearing. Warsh is Donald Trump’s pick to lead the Federal Reserve as chair when Jerome Powell’s term ends next month. The question is his view on interest rates, what the proper rate would be, and ultimately, how critical that position is.
By standard measures, Kevin Warsh is qualified. A Harvard Law School graduate with a bachelor’s degree in public policy from Stanford and additional studies in market economics at Harvard and MIT, he has professional experience in high-level banking, extensive government service and a previous stint as a Fed governor, so he has a good grasp of the job and organization.
These times, however, are not standard. Economists remain divided on the long-term effects of the tariffs introduced last year; several analyses show they have contributed to higher input costs for some industries, which businesses continue to factor into pricing and supply chain decisions. Ongoing tensions in Iran have kept energy markets volatile, with traders watching for any development that could affect shipping routes through the Strait of Hormuz.
Where Warsh Stands On Rates
Although not the only issue, the most obvious one concerning Warsh is his stand on interest rates. Trump has repeatedly argued for lower........