Forecasters say Kevin Warsh will likely keep Fed rates unchanged
Kevin Warsh just stepped in as the new Federal Reserve chair, and his first policy meeting (June 16-17) is already making headlines.
Despite President Donald Trump pushing for lower interest rates to boost the economy, forecasters expect rates will stay put at 3.5% to 3.75%.
Why? Strong job growth and inflation, especially with global tensions, mean a rate cut isn't likely.
Inflation above 2% since 2021
Inflation has been running hot, staying above the Fed's 2% target since 2021. Gas prices have pushed costs up further, with May's inflation hitting 4.2%.
While wages are rising steadily, people are feeling less confident about the economy, and health care hiring is up.
Warsh is expected to keep the Fed independent from political pressure, so everyone will be watching for any hints about future rate moves at this meeting.