Trump gives Fed Chair Warsh room to reshape US central bank
The White House is giving new Fed Chair Kevin Warsh broad latitude to redesign the central bank's structure and monetary policy. Investors are watching closely amid concerns about the rate path and Fed independence. This is not investment advice.
According to CNBC, Donald Trump has given new Federal Reserve Chair Kevin Warsh unusually broad latitude to overhaul both the central bank's internal structure and its monetary-policy framework. People close to the White House say the president expects visible changes to the rate path in the near term and to the Fed's communication and governance model further out.
Investors are paying close attention to every Warsh comment. The dollar index, US Treasury yields and inflation expectations have been choppy over the past week, and some strategists warn the process could test the Fed's perceived independence. A White House spokesperson said Warsh would take a "rules-based and data-driven" approach.
Market participants will track Warsh's monetary-policy speeches and staffing decisions ahead of his first FOMC meeting. This article is for information only and should not be treated as investment advice.
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