- Federal Reserve Chairman Kevin Warsh denied President Trump's push for a rate cut, leaving policy in place as war-stoked inflation drives the central bank's stance.
- A year ago Warsh criticized the Fed for keeping interest rates too high and pitched a technology-led growth boom that would not stoke inflation; that outlook no longer governs policy.
- The standoff puts political pressure on Fed leadership at the same time inflation, not growth, is the binding constraint on the rate path.
Quotes
“when Kevin Warsh was angling to lead the Federal Reserve, he called out the central bank for keeping interest rates too high”
“Warsh Defies Trump's Calls for Rate Cut as War Stokes Inflation”