F/m Investments CEO and CIO Alex Morris said he does not expect Federal Reserve Chair Kevin Warsh to raise interest rates at the upcoming meeting next week, despite mounting inflation and new tariffs. Morris noted that while a rate hike would be economically justified given persistent above-target inflation and wage stickiness, Warsh is unlikely to act because he was appointed by President Donald Trump after a vetting process aimed at aligning with the president's agenda, and hiking into a midterm cycle would risk the same ire Trump directed at his predecessor. He added that Warsh has signaled a need to revisit classic monetary policy wisdom and may lean toward less aggressive measures, while also delivering less forward guidance. Morris expects the Fed to hold steady next week and possibly delay any hike beyond the Jackson Hole gathering, leaving markets with little discernible signal.
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