Federal Reserve leadership change could determine affordability for millions as borrowing costs squeeze household budgets ahead of midterm elections.
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NoinstitutionhasmoreinfluenceoverwhatAmericanscanaffordthantheFederalReserve,onemostpeoplerarelyfollowbutfeeleverymonthintheirfinances.
Thatinfluenceisn’talwaysobvious.TheFeddoesn’tdecidewhatgroceriesorcarscost,butitdoesdeterminehowexpensiveitistoborrowmoneytopayforthem.Andrightnow,borrowingiscostly.Highinterestratesmeanlargermonthlypaymentsonmortgages,carloansandcreditcards,evenifthestickerpriceofahomeorvehiclehasn’tchanged.
ThatmakestheFed’sleadershipespeciallyconsequential.OnFriday,PresidentDonaldTrumpnominatedKevinWarshtosucceedFederalReserveChairJeromePowell,amovethatcouldalterhowaggressivelythecentralbankapproachesinterestrates.
TRUMPNOMINATESKEVINWARSHTOSUCCEEDJEROMEPOWELLASFEDERALRESERVECHAIR.
TrumphasblamedPowellfornotcuttingratesmoreaggressively,evenashehasrepeatedlydescribedtheeconomyasstrong.Historically,ratecutshaveusuallybeenres
