Newssos
Kevin Warsh, the new Federal Reserve chair, has moved to dispel investor skepticism about his commitment to controlling inflation, pairing hawkish public statements with a simultaneous fall in oil prices to push long-term expectations for price rises lower.
The combination has reassured markets that had questioned whether Warsh would hold the line on price stability. Warsh Signals Hawkish Posture Warsh's words have done the work investors were waiting for.
Doubts had circulated in markets about whether the new Fed chair would prosecute the fight against inflation with the same resolve seen from his predecessor.
His recent statements have shifted that calculus, signaling a willingness to keep policy tight enough to anchor price expectations. The Fed chair's credibility on inflation matters beyond the policy rate itself.
Keep reading