Warsh Faces 62-Month Inflation Streak as Wall Street Pushes Fed Rate-Cut Calls to 2027

Incoming Federal Reserve Chair Kevin Warsh faces a worsening inflation backdrop after the April Consumer Price Index showed U.S. inflation has exceeded the Fed’s 2% target for 62 straight months. Annual CPI rose to 3.8% in April from 3.3% in March, the highest since 2023. Gasoline prices climbed 5.4% month over month and 28.4% from a year earlier amid supply disruptions tied to the Iran conflict. Food-at-home prices rose 0.7%, led by a 2.7% increase in beef and a 1.8% rise in fruits and vegetables. Shelter costs gained 0.6%, while airline fares jumped 2.8%. Wall Street economists are increasingly delaying expectations for Fed easing. Morgan Stanley said on May 13, 2026, that rate cuts are more likely in the first half of 2027 if disinflation resumes later in 2026. Bank of America expects two 25-basis-point cuts in July and September 2027, while Goldman Sachs forecasts cuts in December 2026 and March 2027.