The USD/SEK currency pair extended gains on Monday, pulling further away from a 50-month low of 8.7357, as investors continued to weigh what a Federal Reserve under the leadership of Kevin Warsh might be.
Market players assumed Warsh was less likely to press for all-out swift interest rate cuts than other candidates who had been in the running.
According to Richard Clarida, PIMCO’s global economic adviser and a former Fed vice chair, Warsh will be able to deliver two rate cuts in 2026 and probably a third one.
“Beyond those next two or three rate cuts, we believe Warsh may be more wary, depending on the inflation outlook,” Clarida was quoted as saying by Reuters.
“Warsh, based on his writings since leaving the Fed, may be much less likely to rely on extensive forward guidance about the future path of interest rates.”
The Fed left its federal funds rate target range intact at 3.50%-3.75% at its January 27th-28th meeting, in line with market consensus, following three successive rate cuts last year that brought borrowing costs to their lowest level since 2022.
In Sweden, the manufacturing sector registered the strongest expansion since March 2022 in January, new data showed. The Swedbank Manufacturing PMI came in at 56.0 in January, up from 55.4 in December.
The USD/SEK currency pair was last up 0.30% on the day to trade at 8.9246.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
