JPMorgan Chase: We expect Warsh to align with Trump's interest rate cuts in the short term, but return to his hawkish stance after the midterm elections.

According to ME News, on February 2nd (UTC+8), JPMorgan Chase's chief U.S. economist, Michael Feroli, predicted in a report that Warsh might embrace interest rate cuts in the short term, at least this year. However, he also warned, "As time goes on, especially after the midterm elections and when the government enters a lame-duck period, his stance is likely to be revised, or even revert to a more hawkish stance." Notably, JPMorgan Chase has not adjusted its interest rate cut expectations due to Warsh's nomination. Feroli stated that even if Warsh takes office, the bank still expects the Fed to "hold steady" for the remainder of the year. It's also noteworthy that a former Fed official who worked with Warsh believes that the "real Warsh" will eventually emerge. This anonymous official told CNN, "Wash has coveted this position for too long. He's a smooth operator, extremely adept at climbing the ladder. But this position is his lifelong pursuit. It would be a losing proposition to become a subservient yes-man just to get to the top. The longer he stays in this position, the more likely he is to demonstrate independence." (Source: ME)