Federal Reserve faces a transition as Kevin Warsh is nominated to succeed Jerome Powell
Donald Trump has pushed for rate cuts, raising concerns over central-bank autonomy
Warsh backs lower rates, citing AI-driven productivity gains, though this view may not find consensus within the Fed
Inflation remains above target, complicating decisions on easing monetary policy
Warsh favours faster balance-sheet reduction, which could push market rates higher
Reduced Fed communication may heighten market volatility and uncertainty
Fed policy shifts carry outsized global effects, making this transition critical for markets