Warsh Cracks the Whip: Fed Chair's July 14 Congressional Debut Has Rate-Hike Hawks Salivating 🦅

Federal Reserve Chair Kevin Warsh will deliver his first monetary policy testimony to Congress on July 14, appearing before the House Financial Services Committee at 10:00 a.m. ET, according to a hearing notice published by the panel. The appearance comes as investors re-evaluate the Fed's policy path following recent inflation developments and shifting rate expectations, and it sets up a critical event ahead of the July 28-29 Federal Open Market Committee meeting. Warsh is also slated to testify on July 15 before the Senate Banking Committee, though Senate staff have not yet confirmed the date. U.S. law requires the Fed chair to report to Congress on monetary policy every six months.

Market attention is now turning to the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, with May data due out shortly. Economists surveyed project headline PCE inflation to rise 0.5% month-over-month, following a 0.4% increase in April, and to climb 4.1% year-over-year, compared with a 3.8% gain in the prior reading. Traders are currently pricing in roughly three interest rate hikes for the year, reflecting bets that the Fed will resume tightening if price pressures persist.

Crypto markets have continued to track macroeconomic signals, with traders monitoring Treasury yields and the dollar for clues on policy direction. Bitcoin ($BTC) and ether ($ETH) have remained sensitive to rate-path speculation, though no direct price reaction was recorded at the time of publication. The July 14 hearing will be the first formal opportunity for lawmakers to question Warsh on the Fed's inflation outlook, balance-sheet plans, and any revisions to the dot plot, while investors parse his remarks for indications of when, and how aggressively, the central bank may move next.