"Warsh, who formerly served as a governor under Chairman Ben Bernanke, landed Trump's nomination to take over from Jerome Powell this spring-and with it came the implicit signal that the base rate would be moving lower. After all, President Trump made it clear he would be replacing Powell only with someone more open to the rate cuts the Oval Office has been requesting for the past year."
"Recent data is supplying the evidence needed to land the argument. At present, inflation expectations are coming in above the target of 2%, but not as hot as economists feared. The Bureau of Labor Statistics (BLS) reported Friday that the Consumer Price Index increased 0.2% in January on a seasonally adjusted basis, bringing the YoY increase to 2.4%. That annual rate is the lowest it's been since June 2025, suggesting Trump's tariffs haven't provided the one-off spike in prices which many consumers feared."
Kevin Warsh, previously a governor under Ben Bernanke, received a nomination signaling openness to lower base rates under the Trump administration. Inflation expectations remain above 2% but are cooler than feared; the Bureau of Labor Statistics reported a 0.2% CPI increase in January and a 2.4% year‑over‑year rate, the lowest since June 2025, indicating tariffs did not cause a one‑off price spike. The January jobs report added 130,000 roles with stable unemployment, while markets view the labor market as low‑hire, low‑fire. FOMC minutes show most participants support the 3.5–3.75% rate and are open to hiking if warranted.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]