Citadel Securities Warns of ‘Shifting Landscape’ Under Wa…

On June 29, 2026, Ye Xie reported that investors may be underestimating Federal Reserve Chairman Kevin Warsh's commitment to reducing inflation to the 2% target. Citadel Securities emphasized that the Fed's likely interest rate hikes could negatively impact risk assets. Despite declining oil prices, Nohshad Shah from Citadel noted that underlying inflation pressures persist, reinforcing the case for the Fed to act.

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By Ye Xie

June 29, 2026 at 2:51 PM UTC

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Investors are underestimating how determined Federal Reserve Chairman Kevin Warsh is to bring inflation back to the central bank’s 2% target and the likely drag that will create on risk assets, according to Citadel Securities.

Nohshad Shah, the firm’s head of EMEA fixed-income sales, said in a note to clients that the recent decline in oil prices does little to weaken the case for the Fed to hike interest rates, given that underlying inflation pressures remain elevated.

Read Original at Bloomberg.com →

Citadel Securities Warns of ‘Shifting Landscape’ Under Warsh Fed