![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2026\/06\/GettyImages-2272392942.jpg?w=2048\")
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For Esther George, the former Kansas City Fed president and one of the most reliably hawkish voices to ever sit on the rate-setting Federal Open Market Committee, Americans making long-horizon financial decisions should stop expecting relief from borrowing costs, and instead, start preparing for them to rise.<\/p>\n
\u201cIf I were someone planning with that kind of horizon, I\u2019d plan for higher rates coming ahead,\u201d George told Fortune\u2019s Catherina Gioino. George, when asked directly whether she would cut rates, answered almost as quickly as the predictions for Warsh have come rolling in: \u201cNo I would not.\u201d<\/p>\n
\u201cInflation is a problem right now, and it\u2019s been a problem for a while in the United States,\u201d she said. \u201cThe real choices they\u2019re looking at is, can we hold and see inflation fall? Are we going to have to raise rates? And I think there\u2019s probably a good chance that you\u2019ll have to talk seriously about raising rates, not cutting.\u201d<\/p>\n
Context: President Trump has long called for interest rate cuts and his nomination of Warsh came with that exhortation. If the Fed hikes, expect Trump to react negatively.<\/p>\n
THE MARKETSWall Street holds its nerve despite ships being droned by Iran<\/p>\n
Global stocks were mixed this morning and the price of oil declined\u2014a relatively calm reaction to Iran striking two ships with drones in the Strait of Hormuz and the inevitable counterstrikes that followed. Traders seem to be looking instead to reports that the U.S. and Iran have agreed to cease hostilities, again, and to talk more on Tuesday.\u00a0<\/p>\n
S&P 500 futures were up 0.77% this morning. The index closed flat in its last session and is down 1.98% over the last month.\u00a0
\nIn Europe, the Stoxx 600 was flat in early trading and the U.K.\u2019s FTSE 100 was down 0.19% before lunch.
\nAsia: South Korea\u2019s KOSPI was down 0.2%. Japan\u2019s Nikkei 225 was up 0.15%. India\u2019s Nifty 50 was down 0.39%. China\u2019s CSI 300 was UP 1.21%.\u00a0
\nBrent crude fell to $72 per barrel this morning from a high of $75 the day before.
\nBitcoin declined to $59.8K.<\/p>\n
Coming this week: New Fed chair Kevin Warsh makes a speech on Wednesday at an ECB event in Portugal \u2026 The U.S. will report nonfarm payrolls (the \u201cjobs number\u201d) for June on Thursday. <\/p>\n
IRANMissile strikes aside, traffic through the Strait of Hormuz is improving<\/p>\n
Iran\u2019s drone strike on the “Ever Lovely” tanker in the Strait of Hormuz\u2014and the U.S.\u2019s counter strike against Iran\u2019s drone launching sites\u2014 \u201cis a reminder that [Iran] retains both the capability and the willingness to hit the reset button if its demands are not met,\u201d Deutsche Bank\u2019s Jim Reid advised clients. Iran struck a second ship a day later, too.<\/p>\n
If ship attacks continue, President Trump threatened that the U.S. \u201cwill be forced to militarily complete the job that we very successfully started. If that happens, the Islamic Republic of Iran will no longer exist!\u201d<\/p>\n
And yet, traffic is broadly increasing, as this chart shows.<\/p>\n
\u201cOil prices have reacted little to news of [the] Singaporean-flagged cargo ship being attacked,\u201d UBS\u2019s Paul Donovan noted. \u201cInvestors never assumed reopening the strait would be a straight line.\u201d<\/p>\n
MORE FROM FORTUNE<\/p>\n
Harvard\u2019s housing report has a darker message than affordability\u2014the middle-class home was always a historical accident – Nick Lichtenberg<\/p>\n
Anthony Scaramucci on America 250: where have you gone, Joe DiMaggio? – Anthony Scaramucci<\/p>\n
Social Security is headed for a day of reckoning, and Congress is running out of time to save boomers. Lawmakers are proposing some hard choices – Jason Ma<\/p>\n
One in three Gen Zers is letting AI do their homebuying homework, but they still trust realtors with the closing process – Marco Quiroz-Gutierrez<\/p>\n
David Protein CEO says \u2018diet trends are over\u2019 because of GLP-1s: \u2018What\u2019s next is really hard to predict\u2019 – Sasha Rogelberg<\/p>\n
Even Apple supply chain maestro Tim Cook couldn\u2019t dodge the memory chip \u2018RAM-ageddon\u2019 crisis. Here\u2019s why PC prices are soaring this summer – Alexei Oreskovic<\/p>\n
CHART OF THE DAYYes, AI is killing jobs, Goldman Sachs says<\/p>\n
Goldman Sachs used a question mark in a recent bulletin\u2014\u201dAn AI job apocalypse?\u201d\u2014but the data within it isn\u2019t very reassuring. The tech sector\u2019s share of all jobs began to decline almost instantly with the launch of ChatGPT. Industries where AI is now commonly used are shedding 11,000 jobs per month.<\/p>\n
NUMBER OF THE DAY$687.69<\/p>\n
The\u00a0cash per share that OpenAI is offering in an internal tender offer to its employees ahead of the IPO. But Willy Lee, a principal at SuRo Capital (which is invested in OpenAI) thinks many will decline to sell and wait for the IPO, believing the price will rise further.<\/p>\n
\u201cOpenAI is actually testing that right now with their employee tender, and I’m not sure if all the employees at OpenAI want to sell shares at last round valuation,\u201d he said in an email to Fortune. \u201cI think the valuation is much higher than that. There’s a testing of that right now, and I think what will people will be surprised about is valuations are much higher than that.\u201d<\/p>\n
THE FRONT PAGES TODAY<\/p>\n
Volkswagen\u2019s brutal jobs cull sparks prospect of sale of crown jewels – FT<\/p>\n
Putin details Russia\u2019s fuel shortages after Ukrainian drone strikes – CNBC<\/p>\n
Behind the scenes: How shared fear of Iran led to an Israel-Lebanon deal – Axios<\/p>\n
The Trillion-Dollar Borrowing Binge Lifting the Stock Market to Risky Heights – WSJ<\/p>\n
Aramco Helicopter Crash in Ras Tanura Kills All 14 on Board – Bloomberg<\/p>\n
Chaos Came to CBS News. What\u2019s in Store for CNN? – NYT<\/p>\n
ONE MORE THING\u201cEndless Shrimp\u201d was allegedly a conspiracy that drove Red Lobster into bankruptcy<\/p>\n
Endless Shrimp was also a logistical nightmare. Restaurants were \u201cimmobilized\u201d as they ran out of shrimp, the lawsuit claims. Yet, year after year, Red Lobster repeated the promotion, losing money every time. The chain filed for bankruptcy in May 2024, hurting shareholders.\u00a0<\/p>\n
Why did Red Lobster persist with Endless Shrimp when it was economic suicide? The lawsuit alleges that Red Lobster\u2019s largest shareholder was also its sole supplier of shrimp: a company called Thai Union. After Thai Union backed new CEO Paul Kenny in 2022, Kenny made Endless Shrimp a permanent part of the menu\u2014juicing the sales of Thai Union’s shrimp.<\/p>\n
Seeing the writing on the wall, Thai Union divested its stake in Red Lobster before the bankruptcy, the suit alleges.<\/p>\n
#Trump #wont #Kevin #Warsh #source #inflation #force #Fed<\/p>\n","protected":false},"excerpt":{"rendered":"
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