1035 GMT - Kevin Warsh's first major challenge as Federal Reserve Chair will be winning over the rate-setting committee to his view that interest rates should be lower, Capital Economics economists Thomas Ryan and Alexandra Brown say. "Failing to do so, Warsh risks facing the same level of abuse from President Trump that [Jerome] Powell endured during his tenure," they say in a note. Even with his outsized influence on the direction of policy meetings, Warsh would still be only one vote among twelve on the policymaking committee. Indeed, the FOMC as currently composed appears united that policy is "well-positioned" to respond to incoming data, the economists say. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

February 02, 2026 05:35 ET (10:35 GMT)

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