Kevin Warsh, who’s promised the biggest shakeup in decades at the US central bank, is set to be sworn into office this morning at 1100ET in a White House ceremony as the 17th chair of the Federal Reserve.
Warsh takes over at a tense moment for the economy and the central bank. Inflation has reaccelerated, driven by the impact of war in the Middle East on energy supplies. The Fed, meanwhile, has been battered by President Donald Trump for not cutting interest rates quickly enough.
That backdrop of persistent inflation and political pressure has stoked concern among investors and analysts that the Fed’s independence is under threat. In his confirmation hearing for the job,Warsh repeatedly pledged to act independently even as he criticized the central bank for what he called mission creep and its response to the pandemic inflation surge.
Warsh faces the highest 10Y yield of any Fed Chair being sworn in since Greenspan and a market that is priced dramatically more hawkishly than The Fed's 'dots' expected...
For those watching closely,the first sign of new management will likely be visible in the Fed’s communication about monetary policy.
The June 17 press conference could give us a first taste.
Warsh has promised less forward guidance, data dependence and near-term forecasting, and more dissent.
This would be a structural break from the Bernanke-Yellen-Powell years.
Warsh's swearing-in ceremony is due to start at 1100ET...
As James E Thorne wrote on X,Kevin Warsh’s arrival at the Federal Reserve is not a personnel change. It is a regime change attempt inside an institution built to prevent one.
Source: ZeroHedge News
