Kevin Warsh Nominated for Federal Reserve Chair Amid Controversy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: CNBC
- Hearing Scheduled: The Senate Banking Committee will hold a nomination hearing for Kevin Warsh on April 16, despite ongoing criminal investigations into the Federal Reserve, highlighting the complexities faced by the Trump administration in navigating this situation.
- Investigation's Impact on Nomination: Senator Thom Tillis has stated he will not vote to confirm Warsh until the investigation is resolved, indicating a conflict between Trump's push for the nomination and the need to maintain the Fed's independence.
- Controversy Over Fed Independence: Current Fed Chair Jerome Powell is under investigation for allegedly lying to Congress, which he claims is an attempt to pressure him into lowering interest rates, underscoring the vulnerabilities of the Fed under political scrutiny.
- Judicial Intervention and Investigation Status: Federal Judge James Boasberg has denied the government's motion regarding subpoenas related to the Fed, leaving the future of the investigation uncertain and illustrating the judiciary's critical role in limiting government actions.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 295.380
Low
260.00
Averages
341.38
High
400.00
Current: 295.380
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kevin Warsh Nominated for Federal Reserve Chair Amid Controversy
- Hearing Scheduled: The Senate Banking Committee will hold a nomination hearing for Kevin Warsh on April 16, despite ongoing criminal investigations into the Federal Reserve, highlighting the complexities faced by the Trump administration in navigating this situation.
- Investigation's Impact on Nomination: Senator Thom Tillis has stated he will not vote to confirm Warsh until the investigation is resolved, indicating a conflict between Trump's push for the nomination and the need to maintain the Fed's independence.
- Controversy Over Fed Independence: Current Fed Chair Jerome Powell is under investigation for allegedly lying to Congress, which he claims is an attempt to pressure him into lowering interest rates, underscoring the vulnerabilities of the Fed under political scrutiny.
- Judicial Intervention and Investigation Status: Federal Judge James Boasberg has denied the government's motion regarding subpoenas related to the Fed, leaving the future of the investigation uncertain and illustrating the judiciary's critical role in limiting government actions.
See More
Dow Jones Declines as Nike Stock Hits Oversold Territory
- Nike Oversold Status: Nike's relative strength index (RSI) has plummeted to 15.8 after a 14% drop in share price over the past week, indicating investor impatience with the company's turnaround, as it forecasts a 2% to 4% decline in fourth-quarter sales, below the 1.9% growth expected by analysts.
- Market Reaction: The Dow Jones Industrial Average fell as President Trump warned that the Iran war could last for weeks, coupled with surging oil prices, which pushed stocks in real estate, consumer staples, healthcare, and technology sectors into oversold territory, positioning them for a potential rebound in the near term.
- Analyst Downgrades: Several firms downgraded Nike's stock, citing that the new forecast indicates a longer-than-expected turnaround time, particularly due to the impacts of Middle Eastern disruptions and rising oil prices, which could further hinder sales growth.
- McCormick Acquisition Plans: McCormick & Company announced plans to acquire Unilever's global foods business for approximately $45 billion, reflecting a trend toward consolidation in the food industry, although the mixed historical performance of such megadeals raises questions about future market success.
See More
Oracle's Dubai Office Damaged Amid Rising Tensions in the Middle East
- Incident Overview: Oracle's office in Dubai was damaged by debris from an aerial interception, although no injuries were reported, highlighting the escalating tensions in the Middle East.
- Escalating Security Threats: Iran's Revolutionary Guard has designated 18 tech companies, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, indicating the increasing significance of tech assets in conflicts.
- Industry Impact: James Henderson, CEO of risk management firm Healix, noted that the threats against tech companies are part of a sustained pattern, suggesting that future crises may target data centers and cloud platforms as much as traditional strategic sites.
- Historical Context: In March, Iran attacked Amazon Web Services data centers, causing outages in several apps and digital services in the UAE, underscoring the serious cybersecurity landscape in the region.
See More
Iran Threatens Attacks on U.S. Tech Firms Including Oracle
- Incident Overview: Oracle's building in Dubai sustained minor damage from debris due to an aerial interception, with no injuries reported; however, this incident highlights escalating tensions in the Middle East that could impact Oracle's operational safety in the region.
- Threats to Tech Companies: Iran's Revolutionary Guard has designated 18 U.S. tech firms, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, which raises the operational risks for these companies in the Middle East.
- Rising Cybersecurity Risks: As threats against tech companies escalate, risk management expert James Henderson notes that tech assets are now viewed as integral to the conflict, suggesting future attacks may target data centers and cloud platforms, increasing security vulnerabilities in the industry.
- Historical Context: Iran previously attacked Amazon Web Services data centers in early March, causing outages in various apps and digital services in the UAE, and a repeat of such incidents could severely impact Oracle and other tech firms' operations.
See More
Federal Reserve Rate Cut Forecast Delayed to September 2026
- Rate Cut Delay: According to Nomura's latest report, analysts have pushed back the forecast for the Federal Reserve's first rate cut from June 2026 to September 2026, primarily due to geopolitical volatility and shifting leadership dynamics at the Fed, indicating a cautious market outlook on future monetary policy.
- Geopolitical Impact: The ongoing conflict in Iran has introduced new inflationary pressures into the U.S. economy, with volatile energy prices and supply chain disruptions prompting the Fed to prioritize price stability in the near term, thereby influencing its monetary policy decisions.
- Leadership Changes: The delayed confirmation of Kevin Warsh's nomination has reduced political pressure on the Fed for a mid-year rate cut; although the incoming leadership is expected to eventually prioritize easing, the current political vacuum justifies the Fed's restrictive stance through the summer months.
- Labor Market Response: Despite the delay in rate cuts, Nomura maintains that the Fed's underlying bias remains toward easing, as Chair Jerome Powell has shown a higher sensitivity to signs of labor market weakness, suggesting that once the leadership transition is finalized and labor market conditions cool further, the path for a September rate reduction will become clearer.
See More
JPMorgan's David Kelly Remains Calm Amid Market Noise
- Short-Term Market Fluctuations: JPMorgan's David Kelly believes that the recent pressures from oil prices and tariffs are more indicative of short-term fluctuations rather than long-term trends, although he acknowledges a slight softness in the current economic landscape.
- GDP Outlook Adjustment: JPMorgan has revised its Q2 GDP forecast downward due to weaker tax refunds and rising oil prices, reflecting a cautious stance on economic growth.
- Inflation Expectations Shift: Kelly anticipates that CPI could rise to around 3.5% to 4% by June, but expects it to cool off quickly thereafter, projecting a return to the Fed's 2% target by year-end and potentially dipping below that in 2027.
- Expected Policy Support: He also foresees some form of support from Washington, possibly in the shape of tariff-related rebates, to alleviate economic pressures.
See More
Kevin Warsh Nominated for Federal Reserve Chair Amid Controversy
- Hearing Scheduled: The Senate Banking Committee will hold a nomination hearing for Kevin Warsh on April 16, despite ongoing criminal investigations into the Federal Reserve, highlighting the complexities faced by the Trump administration in navigating this situation.
- Investigation's Impact on Nomination: Senator Thom Tillis has stated he will not vote to confirm Warsh until the investigation is resolved, indicating a conflict between Trump's push for the nomination and the need to maintain the Fed's independence.
- Controversy Over Fed Independence: Current Fed Chair Jerome Powell is under investigation for allegedly lying to Congress, which he claims is an attempt to pressure him into lowering interest rates, underscoring the vulnerabilities of the Fed under political scrutiny.
- Judicial Intervention and Investigation Status: Federal Judge James Boasberg has denied the government's motion regarding subpoenas related to the Fed, leaving the future of the investigation uncertain and illustrating the judiciary's critical role in limiting government actions.
See More
Dow Jones Declines as Nike Stock Hits Oversold Territory
- Nike Oversold Status: Nike's relative strength index (RSI) has plummeted to 15.8 after a 14% drop in share price over the past week, indicating investor impatience with the company's turnaround, as it forecasts a 2% to 4% decline in fourth-quarter sales, below the 1.9% growth expected by analysts.
- Market Reaction: The Dow Jones Industrial Average fell as President Trump warned that the Iran war could last for weeks, coupled with surging oil prices, which pushed stocks in real estate, consumer staples, healthcare, and technology sectors into oversold territory, positioning them for a potential rebound in the near term.
- Analyst Downgrades: Several firms downgraded Nike's stock, citing that the new forecast indicates a longer-than-expected turnaround time, particularly due to the impacts of Middle Eastern disruptions and rising oil prices, which could further hinder sales growth.
- McCormick Acquisition Plans: McCormick & Company announced plans to acquire Unilever's global foods business for approximately $45 billion, reflecting a trend toward consolidation in the food industry, although the mixed historical performance of such megadeals raises questions about future market success.
See More
Oracle's Dubai Office Damaged Amid Rising Tensions in the Middle East
- Incident Overview: Oracle's office in Dubai was damaged by debris from an aerial interception, although no injuries were reported, highlighting the escalating tensions in the Middle East.
- Escalating Security Threats: Iran's Revolutionary Guard has designated 18 tech companies, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, indicating the increasing significance of tech assets in conflicts.
- Industry Impact: James Henderson, CEO of risk management firm Healix, noted that the threats against tech companies are part of a sustained pattern, suggesting that future crises may target data centers and cloud platforms as much as traditional strategic sites.
- Historical Context: In March, Iran attacked Amazon Web Services data centers, causing outages in several apps and digital services in the UAE, underscoring the serious cybersecurity landscape in the region.
See More
Iran Threatens Attacks on U.S. Tech Firms Including Oracle
- Incident Overview: Oracle's building in Dubai sustained minor damage from debris due to an aerial interception, with no injuries reported; however, this incident highlights escalating tensions in the Middle East that could impact Oracle's operational safety in the region.
- Threats to Tech Companies: Iran's Revolutionary Guard has designated 18 U.S. tech firms, including Oracle, as 'legitimate targets' in retaliation for U.S. and Israeli strikes, which raises the operational risks for these companies in the Middle East.
- Rising Cybersecurity Risks: As threats against tech companies escalate, risk management expert James Henderson notes that tech assets are now viewed as integral to the conflict, suggesting future attacks may target data centers and cloud platforms, increasing security vulnerabilities in the industry.
- Historical Context: Iran previously attacked Amazon Web Services data centers in early March, causing outages in various apps and digital services in the UAE, and a repeat of such incidents could severely impact Oracle and other tech firms' operations.
See More
Federal Reserve Rate Cut Forecast Delayed to September 2026
- Rate Cut Delay: According to Nomura's latest report, analysts have pushed back the forecast for the Federal Reserve's first rate cut from June 2026 to September 2026, primarily due to geopolitical volatility and shifting leadership dynamics at the Fed, indicating a cautious market outlook on future monetary policy.
- Geopolitical Impact: The ongoing conflict in Iran has introduced new inflationary pressures into the U.S. economy, with volatile energy prices and supply chain disruptions prompting the Fed to prioritize price stability in the near term, thereby influencing its monetary policy decisions.
- Leadership Changes: The delayed confirmation of Kevin Warsh's nomination has reduced political pressure on the Fed for a mid-year rate cut; although the incoming leadership is expected to eventually prioritize easing, the current political vacuum justifies the Fed's restrictive stance through the summer months.
- Labor Market Response: Despite the delay in rate cuts, Nomura maintains that the Fed's underlying bias remains toward easing, as Chair Jerome Powell has shown a higher sensitivity to signs of labor market weakness, suggesting that once the leadership transition is finalized and labor market conditions cool further, the path for a September rate reduction will become clearer.
See More
JPMorgan's David Kelly Remains Calm Amid Market Noise
- Short-Term Market Fluctuations: JPMorgan's David Kelly believes that the recent pressures from oil prices and tariffs are more indicative of short-term fluctuations rather than long-term trends, although he acknowledges a slight softness in the current economic landscape.
- GDP Outlook Adjustment: JPMorgan has revised its Q2 GDP forecast downward due to weaker tax refunds and rising oil prices, reflecting a cautious stance on economic growth.
- Inflation Expectations Shift: Kelly anticipates that CPI could rise to around 3.5% to 4% by June, but expects it to cool off quickly thereafter, projecting a return to the Fed's 2% target by year-end and potentially dipping below that in 2027.
- Expected Policy Support: He also foresees some form of support from Washington, possibly in the shape of tariff-related rebates, to alleviate economic pressures.
See More
