Warsh's Fed Seen as Likely Less Dovish Than Markets Expect -- Market Talk

Dow Jones02:22

1422 ET - Incoming Fed Chair Warsh is unlikely to promote any significant changes in his first meeting, next month, WisdomTree's Kevin Flanagan says. He thinks Warsh isn't as dovish as markets suppose and his proposed reduction of the Fed's balance sheet amounts to monetary tightening. The new Chair will also meet a board unlikely to support easing. "He is coming into a scenario, even if you remove the Middle East, where the economic and inflation backdrop does not argue for a rate cut," Flanagan says. "At a minimum, it just argues for policy to stay on hold... Investors who feel Warsh coming in was going to be a rubber stamp for a rate cut will be disappointed." (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

May 21, 2026 14:22 ET (18:22 GMT)

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