New Fed Chair Kevin Warsh Has So Far Defied President Trump at Every Turn. But He May Yet Find a Way to Deliver for One of the Fed's Biggest Critics.
Early in his tenure as Federal Reserve chair, Warsh has not been able to deliver the interest rate cuts that President Trump has been seeking.
New Fed Chair Kevin Warsh Has So Far Defied President Trump at Every Turn. But He May Yet Find a Way to Deliver for One of the Fed's Biggest Critics.
Overview
Kevin Warsh has only been chair of the Federal Reserve's Board of Governors for a little over a month, but given how mad President Trump got at former Fed Chair Jerome Powell when the Fed didn't lower interest rates earlier this year, it's a bit of a headscratcher why Trump chose Warsh.
So far, Warsh has publicly said he thinks inflation is a problem and the market is now pricing in more interest-rate increases than it did under Powell. Warsh has also been pretty clear that he thinks the Fed has been overly communicative with markets and that its bloated balance is a problem.
Details
But the large balance sheet and the Fed's transparency have also been considered a boon to the market in recent years, and Trump clearly wants the market to do well during his time in office.
Source
Originally published at www.fool.com.
