Kevin Warsh Said the Fed Has "No Tolerance" for Inflation and Is Charting a "New Course" on Monetary Policy. J.P. Morgan Analysts Expect Rates to Hold Steady Through 2026.

New Federal Reserve Chair Kevin Warsh emphasized the Fed's firm stance against inflation, stating it has "no tolerance for persistently elevated inflation." However, he provided no clear signals on future interest rate decisions. J.P. Morgan analysts expect the Fed to hold rates steady through 2026, with the next rate hike potentially coming in Q3 2027. The Fed remains divided on policy direction, with half of policymakers favoring higher rates by year-end and the other half preferring to hold or cut.