Warsh's First Fed Meeting Signals Hawkish Shift Amid Strong Jobs and Iran War Inflation
Kevin Warsh’s initial Federal Reserve meeting has taken a hawkish tone, driven by improving US labor data and an inflation spike caused by the Iran conflict, effectively ending hopes for near-term rate cuts.
The first Federal Reserve meeting under Kevin Warsh has marked a clear hawkish pivot. Officials pointed to a decisive improvement in US labour market data as a key factor in their stance.
Additionally, the war in Iran has triggered a sharp rise in inflation, removing any remaining expectations of a rate cut soon. The combination of tight labor and elevated prices has consolidated the hawkish outlook, dashing earlier hopes for Trump-era policy easing.
Source: FXStreet Forex News