By Matt Grossman

President Trump has made clear that he expects his Federal Reserve chair nominee, Kevin Warsh, to bring interest rates lower if he is confirmed to succeed Jerome Powell starting in May.

Comments Tuesday from two Fed officials underscore that cuts could face friction.

In separate speeches, Beth Hammack and Lorie Logan, presidents of the Cleveland Fed and Dallas Fed respectively, both outlined concerns that inflation remains too high and that progress on corralling price increases may stall. Both said that after cuts the Fed has made over the past 18 months, interest rates may no longer be doing much to restrain growth and inflation, raising the risk that further reductions might make the problem worse.

"Rather than trying to fine tune the funds rate, I'd prefer to err on the side of patience," Hammack said. She added that the central bank "could be on hold for quite some time."

Hammack and Logan are both among the rotating group of regional Fed presidents with a vote on monetary policy this year. Should Powell or Warsh move to cut rates further, Hammack's and Logan's votes could weigh against a group of Trump-appointed governors on the Fed's board who have supported more easing.

Wall Street traders are mostly betting that the Fed will hold rates steady again in March for a second straight meeting, but the implied odds of a cut before May are much closer to 50-50.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

February 10, 2026 13:36 ET (18:36 GMT)

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