Fed preview: Warsh walks into a minefield -- a look at early stumbles of other Chairmen
EUR/USD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
UOB | Neutral | 1.1450 |
Citi | Bearish | 1.1000 |
MUFG | Bullish | 1.1800 |
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There is a something of a tradition at the Federal Reserve of rookie Chairmen causing themselves problems early in their terms, or in their first press conferences. It's a rare event that begs for a live feed and strong preparation. On Wednesday, the market isn't sure what to exp
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UBS On-Air: Paul Donovan Daily Audio 'Will it be Warsh?'
Lead — The potential nomination of former Fed Governor Warsh as Fed Chair under President Trump introduces increased uncertainty surrounding future U.S. monetary policy. Per the full note from UBS, Warsh's historical hawkish tendencies raise questions about his ability to steer the Fed toward aggressive rate cuts, especially amid political pressures and a potentially divided FOMC. Given that the bond market's sensitivity to political influence has intensified, the path forward may be constrained despite the speculation around technological disinflation promoting lower rate scenarios. Overall, the outlook will be shaped by both Warsh's confirmation process and the market's reaction to the Fed's evolving stance.