economy
March 18, 2026
Analysis: The Fed's Powell just delivered a new blow to Warsh's plans for swift rate cuts
Oil prices were always going to be a problem for the next Fed nominee. On Wednesday, Jerome Powell outlined another worry.
TL;DR
- Fed officials have increased their predictions for inflation and interest rates.
- Higher oil prices and the slow progress on tariffs are cited as reasons for the revised forecasts.
- The Summary of Economic Projections shows increased expectations for core PCE inflation.
- The dot plot indicates fewer Fed officials are anticipating multiple rate cuts this year.
- Fed Governor Christopher Waller, previously advocating for lower rates, agreed with current policy in the latest meeting.
- Kevin Warsh, a nominee who favors lower interest rates, faces a potentially resistant Fed committee.
- Warsh's confirmation is uncertain due to a criminal investigation involving Fed Chair Jerome Powell.
- Powell remains in his position while the investigation and related legal processes continue, delaying Warsh's potential confirmation.
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