Kevin Warsh set to lead Federal Reserve as US inflation climbs toward three-year high

Kevin Warsh is expected to succeed Jerome Powell as Federal Reserve chair, inheriting an economy facing three-year high inflation driven largely by rising energy costs from the Iran conflict. Warsh is known for a hawkish stance that prioritizes inflation control, likely leading to continued high interest rates despite political pressure from the Trump administration for cuts. The Federal Open Market Committee remains divided on policy, and analysts warn that optimistic expectations regarding AI-driven productivity may be further fueling consumer spending and inflation. For financial and crypto markets, a hawkish Fed signals potential downward pressure due to tightened liquidity and borrowing costs.

(Source：Crypto Briefing)