<div id="readability-page-1"><div><p>[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.</p><p>“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.</p><p>“He has got a difficult boss but you know he (Warsh) is a serious guy.”</p><p>Warsh will be sworn in as US Federal Reserve chief on Friday by President Donald Trump. Trump chose Warsh to head the US central bank following the end of Jerome Powell’s term.</p><p>US CPI increased 3.8 per cent in the year to April, the biggest annual increase in three years, reflecting rising energy prices following the US-Israeli war with Iran.</p><p>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.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="5504" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/dca1e93cf094b9f213759a31958c8c68466f428b061ca38633e30e7247030f65/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="8256" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/dca1e93cf094b9f213759a31958c8c68466f428b061ca38633e30e7247030f65/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>What bond investors should know about a Warsh-led Federal Reserve</span></h3><p></p></div></div><div><div><div><p><img height="2437" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/3d8499afa509b33fe8eb78fe1a23109a996eed450e945f4de7e257ca4e65109d/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="3655" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/3d8499afa509b33fe8eb78fe1a23109a996eed450e945f4de7e257ca4e65109d/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>‘A Fed chair with a spine’: A look back at Jerome Powell’s tenure as US central bank chief</span></h3><p></p></div></div><div><div><div><p><img height="2736" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/32c578810717912e5a6b1472cb8a7c76e17163bd9f78d821dc777be5eb6c5e84/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="4096" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/32c578810717912e5a6b1472cb8a7c76e17163bd9f78d821dc777be5eb6c5e84/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Fed names Powell chair pro tempore until Warsh sworn in</span></h3><p></p></div></div></div></div></div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>Trump has repeatedly called on the Fed to cut rates dramatically. Market pricing currently shows roughly a 60 per cent chance the Fed raises rates by year-end. REUTERS</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>Standard Chartered CEO Bill Winters stated that incoming Federal Reserve chair Kevin Warsh faces significant challenges, including political pressure to cut rates amid persistent high inflation. Warsh, appointed by President Trump, will be sworn in soon, with the US CPI rising 3.8% year-on-year. Some Fed policymakers are leaning towards rate hikes instead of cuts, despite market expectations of a potential rate increase by year-end.</p>

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Fed’s Warsh has a difficult boss and tough job ahead, says StanChart CEO Winters