Warsh Rate Cut Odds Fade as U.S. Economy Shows Strength

Investors delayed expectations for a Fed rate cut to July amid strong growth. Hawkish sentiment and high CEO confidence are limiting the scope for easing.

Xurve View

The outlook for early interest rate cuts under the anticipated leadership of Kevin Warsh is becoming increasingly uncertain as the economy of the United States demonstrates persistent strength. While President Donald Trump has signaled expectations for a swift pivot toward monetary easing, a combination of robust growth data, heightened corporate confidence, and a hawkish shift among Federal Reserve policymakers is complicating that path.

Former U.S. Federal Reserve Governor Kevin Warsh at a Stanford University monetary policy event in May 2025. REUTERS/Ann Saphir/File Photo
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