New Federal Reserve Chair Warsh emphasizes political independence, signals focus on inflation

New Federal Reserve Chair Warsh emphasizes political independence, signals focus on inflation highlights comments by newly appointed Federal Reserve Chair Kevin Warsh aimed at insulating monetary policy from political pressure. Speaking Wednesday at a central bank conference in Sintra, Portugal, Warsh said the Fed will remain independent and prioritize bringing inflation down, effectively narrowing the chances of rate cuts sought by President Donald Trump. He told an audience that if businesses or households expect inflation above 2%, they would be “disappointed,” adding the Fed will deliver price stability. Warsh also declined to outline specific steps to fight inflation and avoided signaling through what the article calls “forward guidance.” The piece notes he appears to have shifted since replacing Jerome Powell as chair on May 22, having previously called for lower rates. Wall Street expects the key rate, currently around 3.6%, could rise to roughly 3.9% as soon as September.