Kevin Warsh takes over Fed in a scenario of inflation and uncertainty about interest rates

Economist Kevin Warsh took over this Friday (22) as head of the Fed (Federal Reserve), the central bank of the United States, at a time of strong pressure on American monetary policy and investors' growing concern about inflation, interest rates and economic slowdown.

Warsh's arrival at the Fed also marks a new phase in the relationship between the American central bank and United States President Donald Trump. The new chair takes over after the long term of Jerome Powell, who faced public friction with Trump over the last few years.

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Bernardo Pascowitch, founder and CEO of Yubb, notes that the American economic scenario increases pressure on the future leader of the North American central bank.

"The new Fed chair will have the challenge of balancing political pressures with economic risks, in a scenario of high inflation and weaker growth in the USA", he states.

According to him, investors are following the latest data on the American economy with concern, especially inflation and economic activity indicators.

Marilia Fontes, presenter of Resenha do Dinheiro, assesses that despite the political pressure for lower interest rates, "the market believes that Warsh will maintain a technical performance in command of the American monetary authority".

The high interest rate scenario in the United States also impacts global markets, especially emerging countries and riskier assets.

"High interest rates in the US drain resources from around the world. This causes investors to direct more capital to American public bonds and reduce exposure to global variable income assets and cryptocurrencies", says the presenter.

Pascowitch considers that the market has already revised expectations for the next interest rate cuts in the United States.

"Before, the market expected interest rate cuts in 2026. Now, part of the bets already point to a reduction only in 2028. This completely changes the global flow of investments", he says.

Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.

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Source: CNN