Incoming Fed chair Kevin Warsh has a difficult boss and a tough job ahead, says StanChart CEO Bill Winters

HONG KONG: Incoming Federal Reserve chair Kevin Warsh faces both a tough environment and a "difficult boss," Standard Chartered CEO Bill Winters said on Tuesday, pointing to political pressure on Warsh to cut rates even ‌as inflation ⁠remains ⁠high.

"Inflation is stubbornly high and unlikely to come ​down, but he's got the political environment (in which) he will ​be criticised if he doesn't cut rates," Winters told reporters in Hong Kong.

"He has got a ​difficult boss but you know ⁠he (Warsh) is ‌a serious guy."


Warsh will be ​sworn in ​as U.S. Federal Reserve chief ⁠on Friday by President Donald Trump. Trump chose ​Warsh to head the U.S. central bank ​following the end of Jerome Powell's term.

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U.S. CPI increased 3.8% in the year to April, the biggest annual increase in three years, reflecting rising energy prices following the ‌U.S.-Israeli war with Iran.

Some Fed policymakers are already concerned about high inflation and ​want to ​use the ⁠Fed's policy statement to signal that rate hikes, not rate cuts, may be coming.

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Trump has repeatedly called ​on the Fed to cut rates dramatically. Market pricing currently shows roughly a 60% chance the Fed raises rates by year-end.