Warsh Plays Hawkish in Sintra Debut, Warns Rate-Cut Bulls Will Be 'Disappointed'
- In his first international appearance as Fed Chair, Kevin Warsh told the ECB Forum in Sintra that anyone expecting the Fed to tolerate inflation above 2% "will be disappointed," while explicitly refusing forward guidance and calling for a "good family fight" at the next FOMC meeting.
- He acknowledged that inflation expectations and risks have eased recently, which helped traders pare back rate-hike wagers, though yields remained elevated (10-year around 4.48%, 30-year near 4.96%).
- Warsh also highlighted U.S. leadership in the AI revolution and stressed central-bank independence, striking a tone that markets read as more hawkish than the data alone would justify just two days before the June jobs report.