Kevin Warsh Faces First Major Decision on Whether to Reverse Last Year’s Fed Rate Cuts

Kevin Warsh’s first major decision as Federal Reserve chair is whether to reverse last year’s rate-cutting moves. According to Jin10, a column by Nick Timiraos said Warsh chaired his first meeting as Fed chair last month, when policymakers unanimously decided to keep interest rates unchanged. The article said reaching consensus was easy at the time because there was little appetite within the committee to take action. The piece said maintaining that consensus could become more difficult in the coming weeks. Some of Warsh’s colleagues have grown more concerned about inflation and may push discussions about raising rates when the Fed meets on July 28 to 29. The article added that Warsh will have an opportunity to shape the emerging consensus when he testifies before Congress this week. By then, he will have the latest June inflation data, described as the last major batch of data to be released before the meeting.