{"id":960,"date":"2026-05-22T17:09:16","date_gmt":"2026-05-22T17:09:16","guid":{"rendered":"https:\/\/bostonrelocationinsider.com\/?p=960"},"modified":"2026-05-22T17:09:16","modified_gmt":"2026-05-22T17:09:16","slug":"kevin-warsh-takes-charge-of-a-fed-facing-rising-inflation-threat","status":"publish","type":"post","link":"https:\/\/bostonrelocationinsider.com\/?p=960","title":{"rendered":"Kevin Warsh takes charge of a Fed facing rising inflation threat"},"content":{"rendered":"
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When President Donald Trump tapped Kevin Warsh in January to become the next chair of the Federal Reserve, the policy debate centered on when, not whether, interest rates would fall.<\/span><\/p>\n

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Four months later, the economic challenges Warsh inherits after being sworn in Friday have all but eviscerated expectations of any immediate decrease in borrowing costs.<\/span><\/p>\n

Inflation is rising again, and the war with Iran has raised concerns that surging commodity prices could broaden out and morph into a more persistent problem. Officials at the central bank have begun to embrace the possibility that rates may need to rise to get inflation back to their 2% target, a reality that has rattled global bond markets and sent yields on U.S. government debt soaring.<\/span><\/p>\n<\/div>\n

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Higher rates are far from what Trump wanted from Warsh. The president had long stipulated that whomever he chose to replace Jerome Powell — who faced such aggressive attacks from Trump that he decided to stay on as a Fed governor after his term as chair ended to safeguard the institution — agreed with him about the need for lower borrowing costs.<\/span><\/p>\n

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