German commercial bank: Powell may successfully push the Fed to start cutting interest rates from the mid-2026.

Bernd Weidensteiner and Christoph Balz of Deutsche Bank said that Kevin Warsh, the initial choice for Federal Reserve Chairman by US President Trump, was likely to first establish consensus within the Fed and then gradually start implementing further interest rate cuts starting in mid-2026. They stated that given the strong performance of the US economy, Trump's suggestion that the US could have the lowest global interest rates is unlikely to be adopted. However, these economists suggested that monetary policy could become more expansionary than economic conditions would support. They also stated that in addition, Warsh's advocacy for reforming the Fed may not defend the Fed's independence like his predecessors did, which could increase inflation risks.