Fed Chair Kevin Warsh is actually managing U.S. debt costs not inflation, economist says, as interest rates threaten to top GDP growth soon

Fed Chair Kevin Warsh is prioritizing management of U.S. debt costs over inflation, according to an economist's assessment, as interest payments threaten to exceed GDP growth soon. The economist argued the Fed under Warsh is neither hawkish nor dovish but engaged in yield curve management, a function of how precarious the U.S. debt picture has become. The comments come as rising interest costs increasingly threaten to outpace U.S. economic growth, raising fiscal sustainability concerns. The framing suggests monetary policy is being driven by the government's borrowing burden rather than traditional inflation targeting. Investors should watch upcoming Fed decisions for signs that debt-service costs, not inflation data, are guiding rate policy.