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Capital Economics: Fed Likely to Hold Rates This Week as Warsh Comments Watched

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2026-06-16 10:43:43
Capital Economics said it is “almost certain” the U.S. Federal Reserve will keep policy unchanged this week. According to ChainCatcher, the view was cited from a Jin10 report.

Stephen Brown, Capital Economics’ chief North America economist, said the market risk centers on potential communication errors or a shift in Kevin Warsh’s stance, adding Warsh’s remarks could be more hawkish than expected.

Brown also said that if Warsh is constrained by U.S. President Donald Trump, a dovish tone could raise concerns about the Fed’s independence and push up long-term bond yields.

He added that the likelihood is high for two “insurance” rate hikes in December and early next year.
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