Warsh will cut rates, despite consensus view of rate hikes: Analyst
Written by Vince Quill, Staff Writer. Reviewed by Robert Lakin, Staff Editor. Written by Vince Quill, Staff Writer. Reviewed by Robert Lakin, Staff Editor. Warsh will cut rates, despite consensus view of rate hikes: AnalystLatest NewsPublishedMay 23, 2026The current Federal Funds target rate is between 350 and 375 basis points, which traders project to rise by at least 25 basis points in December 2026.
Kevin Warsh, who was sworn in as the chairman of the United States Federal Reserve on Friday, will likely slash interest rates, despite the “consensus” view that he will raise interest rates, according to author, Bitcoin investor and market analyst Lawrence Lepard.
Lepard said that comments from other US officials, including Kevin Hassett, the director of the White House National Economic Council, and Treasury Secretary Scott Bessent, support the likelihood of rate cuts in 2026. He added:
“Warsh will cut. He will use the AI productivity and trimmed inflation excuses and will claim that all the war inflation is transitory. Two data points from today's Wall Street Journal support this view.”
Source: Lawrence Lepard
During Warsh’s swearing-in ceremony on Friday, US President Donald Trump said that the US would tackle its rising national debt through “growth,” signaling an expansion of the monetary supply and a lower interest rate regime.
Investors, traders, and analysts continue to debate about Warsh’s impact on interest rate policy and whether he will cut interest rates, which would boost risk-on asset prices, including Bitcoin and crypto.
Related: Odds against rate cuts high as new US Fed chair set for swearing in
Traders forecast rate hikes in 2026, as uncertainty mounts over new Fed chair
Nearly 68% of traders have priced in an interest rate hike of 25 basis points (BPS) or more by December 2026, according to the Chicago Mercantile Exchange (CME) Group’s FedWatch tool.
“We want to stop inflation, but we don't want to stop greatness,” Trump said on Friday, which was met with skepticism from investors, economists and market analysts.
Kevin Warsh gives his acceptance speech at his swearing-in ceremony on Friday. Source: The White House
In April, US lawmakers scrutinized Warsh’s commitment to preserving Federal Reserve independence, casting doubt on whether Warsh would resist pressure from the Executive Branch to loosen monetary policy.
Senator Elizabeth Warren said that Warsh’s appointment could create potential conflicts of interest, in which the Trump family’s crypto businesses benefit from policies enacted by the new Fed chair.
Meanwhile, Bitcoin, crypto and stock investors could face several months of declining asset prices following the Fed’s leadership transition, as uncertainty over interest rate policy grows.
Magazine: Is China hoarding gold so yuan becomes global reserve instead of USD?
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.More on the subject
ECB pushes back on euro stablecoin proposals, citing financial stability risks9 hours agoAmin Haqshanas
Kevin Warsh sworn in as Fed chair, as traders forecast rate hikes in 202622 hours agoVince Quill
US House lawmakers launch probe into Kalshi, Polymarket insider tradingMay 22, 2026Turner WrightECB pushes back on euro stablecoin proposals, citing financial stability risks9 hours agoAmin HaqshanasKevin Warsh sworn in as Fed chair, as traders forecast rate hikes in 202622 hours agoVince QuillUS House lawmakers launch probe into Kalshi, Polymarket insider tradingMay 22, 2026Turner Wright
Схожі новини
