Warsh‘s views and Fed monetary policy; US-Iran relations following signing of memorandum

Research evidence excerpt

Warsh‘s views and Fed monetary policy; US-Iran relations following signing of memorandum

Richard Koo

23 June 2026

Warsh’s views and Fed monetary policy; US-Iran relations

following signing of memorandum Richard Koo is chief economist at

Nomura Research Institute. This is his

personal view.

On 22 May, under close scrutiny from the global financial community, Kevin Warsh

assumed his new position as the latest chair of the Federal Reserve Board. Markets Richard Koo

r-koo@nri.co.jp

were closely watching this appointment because they want to know how Warsh—who

previously served as a Fed governor and holds strong views of his own regarding the

US central bank—would respond to President Trump’s constant calls on the institution

to cut rates.

The first Federal Open Market Committee (FOMC) meeting under Chair Warsh was

held on 16–17 June. While the policy rate was left on hold, the content of the post- To receive this publication, please

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meeting press conference was markedly different from those of previous Fed chairs. representative.

Chair Warsh stated that the Fed would establish five new task forces to conduct a

fundamental review of the Fed, which meant he would be unable to provide many

answers at the present time.

The type of explanation that had become customary—namely, that this data supports

one interpretation while that data supports another, and that the Fed arrived at its

decision after comprehensively weighing all such information—was almost entirely

absent from this press briefing.

Fed faces renewed inflation risk due to Iran war

Putting aside for now the question of how Mr. Warsh intends to reshape the Fed

through these task forces, I would like to consider what can be concluded at this point