A quieter Fed chief means others narrate the story

Federal Reserve chair Kevin Warsh testified before Congress for five hours last week but said little about what the central bank will do next. According to Axios, Warsh is deliberately pulling back from forward guidance on interest rates—a shift that gives him more policy flexibility but lets other officials shape market expectations. His colleagues were less cautious: vice chair Philip Jefferson signaled the Fed will closely watch July and August inflation data before reconsidering rates; governors Lisa Cook and Christopher Waller expressed patience for now but readiness to act if inflation stays elevated; and Dallas Fed president Lorie Logan called for modestly higher rates. The likely result is no rate change when the Fed meets on July twenty-ninth, but with close vigilance for signs that inflation is not cooling.

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