Finance · South Africa
Kevin Warsh Named New Federal Reserve Chair, Signals Rate Changes
Moneyweb · 2026/01/30
Summary
Former President Donald Trump has confirmed Kevin Warsh as the new chair of the Federal Reserve. Warsh, previously known for his tough stance on inflation, surprised many by supporting lower interest rates in 2025, aligning himself with the president’s economic approach. This shift suggests a change in how the Federal Reserve might handle inflation and economic growth in the coming years. Lower interest rates can encourage borrowing and investment but may also risk higher inflation if not managed carefully. Warsh’s appointment signals possible changes in U.S. monetary policy, which could have a broad impact on global markets, including South Africa’s economy.
OnABudget takeaway: South Africans should watch global interest rate changes closely, as shifts by the U.S. Federal Reserve can affect loan rates, inflation, and investment opportunities here at home.