Story perspectives

Fed Chair Warsh Rejects Rate Cuts, Mortgage Rates Hit 6.49%

6/30/2026

Summary

Warsh Rejects Rate Cuts

Federal Reserve (Fed) Chair Kevin Warsh said Fed will not lower mortgage rates, leaving market without rescue.
30-year mortgage rate rose to 6.49% to June 25, from 5.98% this year.
Morgan Stanley co-heads Jay Bacow and James Egan warned Kevin Warsh’s stance keeps rates volatile.
Jay Bacow said reduced forward guidance adds uncertainty, raising mortgage-backed-security costs, noting Chen Zhao that Kevin Warsh repeated Fed is uninterested in rescuing housing market.

Summary

Warsh Confirmed

Senate confirmed Kevin Warsh (Fed Chair) by a 54-45 vote in May.
President Donald Trump expressed frustration that Warsh kept rates steady, calling him “a very good guy over there.”
Wall Street demand for downside protection fell to its lowest level in a year as Warsh signaled a more hawkish, less communicative Federal Reserve (Fed).
Following the news, S&P 500 futures rose 0.77% while Brent crude slipped to $72 per barrel.

1 of 2

Warsh Rejects Rate Cuts

Federal Reserve (Fed) Chair Kevin Warsh said Fed will not lower mortgage rates, leaving market without rescue.
30-year mortgage rate rose to 6.49% to June 25, from 5.98% this year.
Morgan Stanley co-heads Jay Bacow and James Egan warned Kevin Warsh’s stance keeps rates volatile.
Jay Bacow said reduced forward guidance adds uncertainty, raising mortgage-backed-security costs, noting Chen Zhao that Kevin Warsh repeated Fed is uninterested in rescuing housing market.

1 / 2