A New Fed Chair Wouldn’t Ensure Rate Cuts

WASHINGTON (AP) — President Donald Trump has made it clear he expects his choice for Federal Reserve chair to quickly cut interest rates once he takes office. Yet Americans shouldn’t pencil in lower borrowing costs for mortgages, auto loans, or business loans just yet. Kevin Warsh is the likely successor to current Fed chair Jerome Powell when his term ends May 15. But Warsh will still face several hurdles to reducing rates even if he gets confirmed, including rising gas prices that are pushing up inflation, questions about his political independence, and 11 other Fed policymakers who have a vote on the decision, with most of them not ready to cut. Trump, meanwhile, has kept up the pressure.