Warsh move at the Fed unlikely to derail current monetary stance: economists in World Economy News 03/02/2026 Economists say the expected transition to Kevin Warsh as chair of the Federal Reserve is unlikely to shift U.S. monetary policy meaningfully this year, with both Barclays and Morgan Stanley highlighting that the Federal Open Market Committee, not the incoming chair, will determine the path of interest rates. Barclays analyst Marc Giannoni said the combination of a “resilient economy, elevated inflation, and a divided FOMC” leaves “limited scope for easing” this year. He added that attempts by Warsh to push for deeper rate cuts “will face resistance – both within the divided FOMC and given tension with Warsh’s own inclinations.” “Despite temporary roadblocks in the Senate, we expect him to be confirmed by May 15, the end of Powell’s term,” added the analyst. Giannoni noted that the Fed chair has just one vote, and that with policymakers split over the appropriate rate path, consensus-building will be slow. Barclays still expects two rate cuts this year, one in June and another in December, but warned that if inflation remains elevated and unemployment stays near 4.4 percent, the committee “will be unwilling to cut rates more than twice.” Morgan Stanley chief global economist Seth Carpenter echoed that view, saying the transition “will not change the Fed’s reaction function materially, particularly in the near term.” He stressed that any deviation from the committee’s current framework would meet “more than a couple of dissents.” While Warsh has argued for a smaller balance sheet, Carpenter said any shift would require consensus, “pushing any such decision to next year.” Source: Investing.com 2026-02-03 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share