President Trump has publicly called on Federal Reserve nominee Kevin Warsh to cut interest rates immediately. Despite this pressure, market confidence in such a move remains exceptionally low.
Odds for a 25 basis point rate cut after the April 2026 meeting stand at just 0.2%, indicating deep skepticism among traders. Markets show near-zero confidence that Warsh would deliver cuts, citing high inflation and the ongoing US-Iran conflict as significant barriers to such a policy shift. Betting on larger cuts also remains flat.
Market volumes reflect this indifference. While $2.3 million in face value has traded, the actual USDC volume is minimal. Warsh's public statements and commitment to controlling inflation suggest he is unlikely to yield to political pressure for immediate rate reductions.
Traders await Warsh's next Senate hearing for any signals that might alter the current market sentiment or indicate a shift in Fed policy.