Warsh’s Fed Chair Bid Faces Test Of Unity And Trust, Atlanta Fed President Reportedly Says

• According to a report from Reuters, Bostic said at the Rotary Club of Atlanta that Warsh will have to deal with a "tall task" while helming the Federal Reserve.
• Bostic reportedly said he believes the Fed should hold rates steady and not cut rates at all this year.
• He added that cutting rates would make it difficult to curtail inflation and bring it back to its target or even get it on a trajectory to that.

Atlanta Fed President Raphael Bostic reportedly said that U.S. President Donald Trump's Federal Reserve chair nominee Kevin Warsh has a sizable task ahead of him if he is confirmed in the position.

According to a report from Reuters, Bostic said at the Rotary Club of Atlanta that Warsh will have to deal with a "tall task" while helming the Federal Reserve, especially with regard to convincing all the members of the committee to align with him on monetary policy decisions.

Trump nominated Fed governor Kevin Warsh as the next Federal Reserve Chair on Friday in a post on Truth Social.

The Road Ahead

Trump has said he nominated Warsh partly because the former Fed governor agrees that key borrowing rates in the country should be lower. The president has been urging current Fed Chair Jerome Powell, whose term will end in mid-May, to lower interest rates further.

"If you want to have policy enacted or go in a direction that you want, you've got to convince them to go along, and in order to do that, you've got to build a relationship with them," Bostic said on Monday, as per the Reuters report.

He also added that Warsh will have to build trust, and demonstrate wisdom as well as guidance. “And those things don't happen overnight. And so it's just a huge undertaking," Bostic added.

Bostic shares Powell’s views, reportedly saying he believes the Fed should hold rates steady and not cut rates at all this year.

Last week, the Federal Reserve announced that it will hold key interest rates steady at 3.50% - 3.75%, in line with market expectations.

Bostic said that he thinks this is the time to be patient as the economy is now strong and the labor market has stabilized. He said that cutting rates would make it difficult to curtail inflation and bring it back to its target or “even get it on a trajectory to that.”

Economic Outlook

Speaking at the Rotary Club of Atlanta, Bostic said that the American economy looks resilient. He said that he believes the country will exhibit strong economic performance in the first half of 2026 and noted that by midyear, the economy would reach an equilibrium.

However, Bostic warned that inflation would likely remain elevated and be a source of concern. He added that the economy is still reeling from the effects of Trump’s tariffs and it would be premature to declare that inflation is under control.

Meanwhile, U.S. equities rose in Monday’s mid-day trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.70%, the Invesco QQQ Trust ETF (QQQ) rose 1.02%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) climbed 1.07%. Tech-heavy Nasdaq-100 (NDX) also gained 1.07% at the time of writing.

Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 20+ Year Treasury Bond ETF (TLT) was down by 0.22% at the time of writing, while the iShares 7-10 Year Treasury Bond ETF (IEF) fell 0.16%.

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