Fed Chair Kevin Warsh Has Held Rates Steady in Back-to-Back Meetings Since Taking Over in 2026.
What His Cautious Start Means for Markets
Kevin Warsh is sending mixed signals to the market. The new Federal Reserve Chair, who took the position in May, came to the central bank sounding like a monetary policy hawk. That is, he has emphasized the Fed’s mandate for low and stable inflation rather than its mandate to achieve maximum employment.
And understandably so, as headline inflation was 3.5% over the past 12 months (as of June, the latest reading available). Even when you exclude volatile food and energy items, prices rose 2.6% over the past year. That’s well above the Fed’s long-term target of 2%.