Kevin Warsh May Throw President Donald Trump Under the Bus in His First FOMC Meeting as Fed Chair

Kevin Warsh's first FOMC meeting as Fed Chair on June 17, 2026, arrives with U.S. inflation at a three-year high of 4.2% in May. The committee is expected to abandon its easing bias and shift to a neutral stance, with market participants pricing in potential rate hikes before year-end.

Warsh is likely to attribute the inflation spike to President Trump's tariff policies and Iran-related geopolitical developments, echoing the approach of former Chair Jerome Powell. The hawkish pivot threatens equity valuations that remain historically elevated, raising the prospect of a policy-driven correction as the Fed pivots from accommodation to tightening.

The May inflation print of 4.2% represents a reversal of the disinflationary trend that had supported the Fed's prior stance. If Warsh signals openness to rate increases at the June 17 meeting, fixed income markets will reprice duration risk while growth-sensitive equities face multiple compression.