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New Fed Chairman Warsh is expected to announce no change to the Fed fund rate at 14:00 (ET) Wednesday.
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The Fed fund futures curve shows the market is pricing in a 25-basis point hike at the conclusion of the December 2026 meeting.
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However, the intrigue will be how long the US president allows this situation to exist, keeping in mind his dictate for lower rates and his stated belief he should have final say on all interest rate decisions.
Welcome to another Fed Wednesday. With the situation as it is now we can safely say, “It’s Howdy Doody time!” New US Fed Chairman Warsh, aka the president’s personal Howdy Doody puppet, is expected to announce no change to the Fed fund rate at 14:00 (ET), based on the latest look at the Fed fund futures (ZQM26) forward curve. However, given the dictate of lower rates from the puppeteer himself, it’s possible by this time Thursday morning Mr. Warsh could hold the title “former Chairman” after hearing the president’s trademark “You’re fired”.