There’s ‘no chance’ Warsh will be able to get the Fed to cut rates, Paul Tudor Jones says
New Fed Chairman Kevin Warsh will not consider lowering interest rates and may even want to consider raising them, investor Paul Tudor Jones said Thursday.
“Do I think he’ll cut interest rates? There’s no chance,” Jones said in a wide-ranging interview on CNBC’s “Squawk Box.”
Warsh has made no secret of his belief that the central bank should consider lowering interest rates. The Fed’s benchmark overnight interest rate is currently in the 3.5%-3.75% range, where it has been since December.
While Warsh sees a path to easing, he will face a challenge from the Federal Open Market Committee, which is emerging from a meeting with the most dissenters in nearly 34 years. Most of the disagreement came from regional heads who objected to language in the post-meeting statement that was interpreted as signaling the potential for more cuts after three cuts in the second half of 2025.
Jones said there was a case to be made for the walk.
“Well, I’m thinking of growing them,” he said. “I’d like to see the data. But I mean, of course you’d be thinking about it. And I think it’s going to be restricted before the election.”
Policymakers face an environment where the labor market is stabilizing while the Iran war and President Donald Trump’s tariffs have helped keep inflation well above the Fed’s 2% target.
According to CME Group’s report, futures investors are pricing in a slight and roughly equal chance of a year-long Fed rate cut or rate hike. FedWatch measures.
