Bloomberg Surveillance · Wednesday, July 8, 2026
The Federal Open Market Committee (FOMC) has pivoted from an easing stance to a tightening one, a move that surprised some, particularly Kevin Warsh's hawkish stance. The Fed appears to prioritize price stability over the labor market, which is currently stable. However, potential spikes in oil prices due to geopolitical events could alter this outlook.
“Well before the June meeting of the f o MC, we thought that the FED was going to pivot fairly significantly from an easing stance back in April to a tightening stance in June, and that's exactly what happened.”
“The big surprise to me was that Kevin Warsh turned out to be among the hawks, because he had when he interviewed for the job, he certainly signed a dubbish.”
“Now, the FED seems to be pretty much all aligned with the idea that price stability is much more important than the labor market. Labor market seems to be stable, but you know, all bets could be off here depending on what happens with the Middle East.”