NewsMV
The question in focus for rates markets is how high Kevin Warsh is prepared to take policy after a start strong enough to leave the rate path genuinely open.
The new Federal Reserve chair has demonstrated a commitment to central bank independence in the face of outside pressure, and that posture carries the most direct read-through for anyone positioned in rate-sensitive assets.
Independence matters to the trajectory in a specific way.
A chair who has shown he will not bend under pressure is harder to force into early cuts, which keeps the terminal rate question live and the range of outcomes wider than a market pricing in eventual capitulation would have it.
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