Fed Chair Warsh stays silent on rates as markets hunt for direction
Kevin Warsh, the new US Federal Reserve chair, is avoiding public commentary on monetary policy in his first weeks in office. CNBC reports the silence may be a deliberate strategy for a Fed under Trump administration pressure. Treasury yields are stuck in a narrow band as investors wait for verbal guidance.
Kevin Warsh has held no press conferences and cancelled prepared speeches in the weeks since taking over the Fed. CNBC reports this may be a way to avoid any public alignment with the Trump administration's calls for rate cuts, without picking a fight against them.
Markets are pricing a 25-basis-point cut at the July 28-29 meeting with about 60% probability, but the yield curve is flattening. Goldman Sachs economists warned that in the absence of verbal guidance, the market's heavy short positioning could be unwound abruptly.
Warsh's predecessor Jerome Powell resisted eight months of Trump pressure to resign. Former Fed officials told CNBC every word Warsh speaks publicly will be read by the White House as a political test. With independence still contested, silence may be functioning as a buffer.
Read next
Israel attacks Lebanon despite being included in potential peace deal
Israeli Defence Forces (IDF) air strikes on southern Lebanon came just hours after it was announced that the potential US-Iran peace deal would also cover Lebanon. According to Al Jazeera, the strikes targeted villages near the city of Tyre. Lebanon's health ministry said casualties are continuing to rise.
Iran announces funeral and burial dates for late Supreme Leader Khamenei
Socceroos embrace underdog status as they prepare for Türkiye at World Cup
G7 leaders discuss trade imbalances with China, India in pre-summit talks
South Africa trolled by African fans in the wake of World Cup loss
