The FOMC’s decision to leave interest rates unchanged today, accompanied by moderately more hawkish communications, was overshadowed by Chair Jerome Powell announcing in the subsequent press conference that he intends to remain a Governor on the Federal Reserve Board for an as-yet unspecified period. Although Powell said he plans to keep a “low profile” as a Governor, this implies uber-dove Stephen Miran will have to depart, which shifts the FOMC’s composition in a more hawkish direction and complicates incoming Chair Kevin Warsh’s already difficult task of delivering near-term rate cuts.
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