By Aimee Picchi
Federal Reserve Chairman Kevin Warsh will hold his first press conference on Wednesday, offering borrowers and investors a chance to assess his plans to keep the U.S. economy on track.
Warsh, who has vowed that the Fed will remain “strictly independent” in overseeing monetary policy, last month succeeded former chair Jerome Powell at a difficult juncture, with inflation surging to its highest level in more than three years.
At the same time, President Trump has previously underlined his eagerness for the Fed to lower interest rates, the central bank’s main tool for spurring economic growth. Yet Warsh could also benefit from some economic tailwinds, including robust job growth in recent months.
The energy shock is reigniting inflation
Prices rose by 4.2% on an annual basis in May, the highest level since April 2023, according to the Consumer Price Index. Energy prices were a major driver, accounting for more than 60% of the increase.Jan ’20Jan ’21Jan ’22Jan ’23Jan ’24Jan ’25Jan ’263.06.09.0%Sep ’242.4%Sep ’242.4%
CPI annual rate
Note: Not seasonally adjusted. October 2025 data is not available due to the government shutdown.
Chart: Aimee PicchiSource: U.S. Bureau of Labor Statistics
With investors overwhelmingly expecting the Fed to keep its benchmark interest rate steady on Wednesday, the focus will be on Warsh himself and his handling of the press conference that follows the central bank’s policy statement, economists told CBS News.
“The story at this meeting is not what’s going to happen with rates — that’s pretty much a foregone conclusion,” said NerdWallet senior economist Elizabeth Renter. “The most interesting thing that’s happening at this meeting is Warsh’s debut and what that means for how we see the Fed moving forward.”
Warsh, a former Fed board governor, has suggested the Federal Reserve should provide less guidance on future rate moves and expressed his view that the AI boom will boost economic productivity, helping to ease inflation and potentially supporting lower borrowing costs.
“The June meeting is unlikely to deliver major policy surprises. The more important question is how Chair Warsh frames inflation, AI, and the future path of rates during his first press conference,” said Gargi Chaudhuri, chief investment and portfolio strategist, Americas at BlackRock, in an email.