Fed Chair Confirmation Hearing Signals No Rate Cuts for 2026

During his confirmation hearing, Kevin Warsh stated there was no commitment to interest rate cuts from the White House. The CME FedWatch tool indicates only one rate cut is predicted for 2026, contrary to the market's expectation of three. Currently, the Fed funds upper bound is at 3.75%, and core PCE gains are running at 0.4%. Economists predict rates to remain steady through September, suggesting that investors should favor quality over speculation, particularly if future cash flows are discounted based on fewer anticipated rate cuts.

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