The Fed's First Meeting Under New Chair Warsh: Markets Hang on Every Word
- The Fed meets from June 16 in Chair Warsh's first policy decision
- Markets closely watch the Trump-nominated chair's stance and tone
- Iran tensions lifting prices make taming inflation the central theme
For Taiwanese investors tracking the yen-dollar gap, this Fed meeting matters as much as the BOJ's. From June 16, new chair Warsh, nominated by Trump, leads his first decision; what markets care about is not the rate move but the tone he sets — a new chair's first words often anchor expectations for the whole term.
With Iran tensions lifting prices, the Fed must still balance inflation against growth. A hawkish, independence-stressing Warsh sustains the dollar rate-gap theme; dovish or accommodative signals would force a rethink on the dollar and Treasuries — a sharp contrast with a possibly-hiking BOJ.
Watch his stance on Fed independence, the dot plot's rate path, and how the US-Japan gap moves the yen — the key variable for readers' dollar and yen holdings.