CNBC: Waller is expected to hold interest rates steady this week, with reform plans and political factors likely prompting a pause in rate hikes.

According to CNBC, most market observers expect Federal Reserve Chair Kevin Warsh to hold interest rates steady at this week’s FOMC meeting. Former banking analyst Meredith Whitney also noted that U.S. consumers are grappling with rising energy costs and slowing credit card spending, giving the Fed more time to monitor economic trends. The report added that while markets remain concerned about inflationary pressures, Warsh prefers to wait for more data. He has previously stated that rising energy prices constitute a supply shock and should not automatically trigger monetary policy adjustments, while arguing that cost increases from AI investments may not evolve into sustained inflation. In addition, Warsh has recently established multiple external expert working groups to advance reforms to the Fed’s policy framework, inflation assessment, balance sheet, and other areas. Analysts believe that a hasty interest rate hike before the reforms are completed could weaken the Fed’s policy maneuverability, while ongoing political pressure from the Trump administration calling for rate cuts also makes Warsh more likely to keep rates steady and continue sending hawkish signals to retain flexibility for future policy adjustments.