Fmr. Fed President Fisher: Market will react negatively if Warsh acts on behalf of the president

Summary

Former Dallas Fed President Richard Fisher discusses Kevin Warsh's new role as Fed Chair, emphasizing the importance of Fed independence. He warns that markets would react negatively if Warsh is perceived as acting on behalf of the president. Fisher also argues the Fed should maintain a hawkish bias due to persistent inflation pressures from tariffs, geopolitical risks, and corporate pricing power.

• Fisher stresses that Fed independence is critical and must be preserved.
• He warns that markets will react negatively if Warsh works on behalf of the president.
• Fisher notes that Warsh faces internal Fed division and previously strained relations with colleagues.
• He advocates a hawkish monetary policy bias until inflation is fully under control.
• Fisher cites Walmart's earnings as evidence that companies cannot hold back price increases.
• Inflationary pressures from Hormuz, tariffs, and momentum are building.
• Fisher expects Warsh will need time to repair relationships within the Fed.
• The Fed committee is unlikely to move in the direction the president wants.