Svmuu News: As Kevin Warsh was sworn in as chairman of the Federal Reserve, Donald Trump told the new chairman to “remain independent” and “don’t look to me, don’t look to anyone—just do your job and do it well.” But that request will soon be put to the test.After presiding over his first meeting as chairman of the Federal Reserve, Warsh may have to deliver unwelcome news to Donald Trump—even though Donald Trump has been calling for lower borrowing costs, the market expects Federal Reserve to keep rates unchanged at this meeting. Bill Adams, chief U.S. economist at Comerica Bank, said that for Federal Reserve to cut rates, they would likely need to see a new negative shock to the labor market—whether from an escalation of the conflict in the Middle East or the materialization of potential downside risks to employment posed by artificial intelligence. If these scenarios do not materialize, Federal Reserve will find it difficult to justify a rate cut in the current environment.Economists note that robust job growth over the past three months, coupled with inflationary pressures stemming from the war with Iran, has left policymakers with little room to cut rates. In recent weeks, traders have shifted their expectations from rate cuts to potential rate hikes later this year or in early 2027. (Jin Shi)