Kevin Warsh, President Donald Trump’s choice for Federal Reserve chair, faces a high-stakes first meeting as markets expect no change to the central bank’s benchmark interest rate—despite Trump’s repeated calls for cheaper borrowing.
On a week where investors are glued to every signal from Washington, Kevin Warsh is walking into his first Federal Reserve meeting with a familiar problem waiting on the other side of the doors: the expectation that nothing will change.
Warsh, President Donald Trump’s choice to chair the Federal Reserve, will likely have to deliver unwelcome news after his first meeting this week. Markets expect the central bank’s benchmark interest rate will stay where it is, even as Trump has consistently called for lower borrowing costs.
That tension—between what the president wants and what markets think the Fed will do—hangs over Warsh’s debut. The meeting arrives with investors already positioned for a steady outcome, leaving Warsh with little room to satisfy a political demand that the financial system isn’t counting on.
Hours of economic attention are also turning to the international stage. The United States and Iran agreed to a framework deal intended to end the monthslong war and reopen the Strait of Hormuz. For the American economy. the immediate link is straightforward: the cost-of-living crisis has taken a small hit in the positive direction. with observers pointing to a decline in how bad daily pressures could get.
But the relief isn’t clean, and plenty of questions remain. The framework deal comes with unknowns. and many people watching financial markets and the economy say they’ve “seen this rodeo before. ” suggesting that past uncertainty has left a lasting skepticism about what’s real versus what’s promised.
Not every economic story this week is about rates or geopolitics. Some readers are being pulled toward a different kind of reset: more travelers are leaving their cell phones and laptops behind for destinations with no cell service or Wi‑Fi. Kathleen Wong reports on trips called “deadzoning. ” where the whole point is to disconnect from technology and reconnect with people. themselves. and nature.
Taken together, the week’s themes show how sharply Americans can feel the tug-of-war between control and uncertainty—whether it’s the path of interest rates, the stability of oil-linked shipping routes, or the decision to step away from constant connectivity.
Kevin Warsh Federal Reserve benchmark interest rate Donald Trump borrowing costs markets Iran ceasefire framework deal Strait of Hormuz cost of living crisis deadzoning travel