Why the Warsh Fed sees interest rate hikes ahead

Summary

Federal Reserve Chairman Kevin Warsh signaled the committee is holding rates steady, but the next move is likely to be a hike due to elevated inflation, partly blamed on the Iran war. The tone marks a shift from his earlier calls for regime change at the Fed.

• Fed in a holding pattern on interest rates
• Committee strongly inclined to raise rates next
• Inflation outlook raised significantly from March
• Iran war cited as a factor for persistent inflation
• Warsh's tone shifted from regime change talk to praising internal dialogue
• No clear timeline given for when inflation pressures may abate