{"id":59120,"date":"2026-02-25T15:08:40","date_gmt":"2026-02-25T19:08:40","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/feds-musalem-backs-warsh-transition-as-inflation-risks-linger-trump-zelenskiy-call-concludes\/59120\/"},"modified":"2026-02-25T15:08:40","modified_gmt":"2026-02-25T19:08:40","slug":"feds-musalem-backs-warsh-transition-as-inflation-risks-linger-trump-zelenskiy-call-concludes","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-musalem-backs-warsh-transition-as-inflation-risks-linger-trump-zelenskiy-call-concludes\/59120\/","title":{"rendered":"Fed&#8217;s Musalem Backs Warsh Transition as Inflation Risks Linger; Trump-Zelenskiy Call Concludes"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>St. Louis Fed President Alberto Musalem<\/strong> signaled support for <strong>Kevin Warsh<\/strong>, expecting a continued commitment to the <strong>dual mandate<\/strong> while forecasting <strong>2%+ GDP growth<\/strong>.<\/li>\n<li><strong>Gilead Sciences (<a href=\"\/stock\/GILD\">GILD<\/a>)<\/strong> reported successful Phase 3 results for its novel <strong>HIV single-tablet regimen<\/strong>, maintaining viral suppression with no new safety concerns.<\/li>\n<li><strong>President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> and Ukrainian President <strong>Volodymyr Zelenskiy<\/strong> concluded a high-stakes phone call as diplomatic efforts intensify.<\/li>\n<li>The <strong>U.S. Department of Commerce<\/strong> is convening with domestic robot manufacturers to strategize against growing industrial competition from <strong>China<\/strong>.<\/li>\n<li><strong>CME Group<\/strong> announced a mid-day reopening for <strong>Natural Gas futures<\/strong> at <strong>12:50 CT<\/strong> following a schedule adjustment that cancelled all active day orders.<\/li>\n<\/ul>\n<h2>Federal Reserve Outlook and the Warsh Transition<\/h2>\n<p>St. Louis Fed President <strong>Alberto Musalem<\/strong> addressed the upcoming leadership transition at the central bank, stating he looks forward to hearing the priorities of <strong>Kevin Warsh<\/strong>, President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>\u2019s nominee for Fed Chair. Musalem expressed confidence that the Federal Reserve&#39;s commitment to its <strong>dual mandate<\/strong>\u2014stable prices and maximum employment\u2014will remain a cornerstone under the new leadership. He described current monetary policy as <em>neutral in real terms<\/em>, suggesting that the central bank is effectively balancing risks to the economy.<\/p>\n<p>Musalem provided a detailed economic forecast, projecting that the U.S. economy will grow <strong>at or above 2%<\/strong> even as the labor market undergoes an <em>orderly cooling<\/em>. He expects the <strong>unemployment rate<\/strong> to stabilize between <strong>4.3% and 4.4%<\/strong>, though he noted that higher layoffs remain a possibility, albeit not his <em>base case<\/em>. Regarding inflation, Musalem noted that the <strong>PCE index<\/strong> currently serves as a more reliable gauge than the <strong>CPI<\/strong>, which may have been artificially depressed through April due to a recent government shutdown.<\/p>\n<p>The Fed official emphasized the need to &quot;finish the job&quot; on inflation, which remains nearly <strong>1 percentage point above the 2% target<\/strong>. Musalem attributed a portion of recent price pressures to <strong>tariffs<\/strong>, but he expects half of that excess inflation to fade over time. He noted that achieving the inflation target would likely support long-term consumption and growth, potentially leading to a decline in the <strong>10-year Treasury yield<\/strong>.<\/p>\n<h2>Geopolitics and Industrial Strategy<\/h2>\n<p>On the diplomatic front, Ukrainian President <strong>Volodymyr Zelenskiy<\/strong> held a phone call with <strong>President Donald Trump<\/strong> on Wednesday. According to a senior advisor, the call has concluded, though specific details regarding the discussion were not immediately released. The conversation follows a period of <em>heightened tension<\/em> and previous discussions regarding ceasefires and military aid as the administration seeks a resolution to the conflict.<\/p>\n<p>Simultaneously, the <strong>U.S. Government<\/strong> is ramping up its focus on domestic technology. <strong>Semafor<\/strong> reported that the <strong>Department of Commerce<\/strong> is meeting with American robot makers to discuss the intensifying competition from <strong>China<\/strong>. The meeting aims to bolster the domestic robotics industry, which has recently called for a <strong>national strategy<\/strong> to compete with Chinese manufacturers who currently lead the world in industrial robot operations.<\/p>\n<h2>Corporate Developments: Gilead and CME Group<\/h2>\n<p>In the healthcare sector, <strong>Gilead Sciences (<a href=\"\/stock\/GILD\">GILD<\/a>)<\/strong> announced positive findings from its <strong>ARTISTRY-2 Phase 3 trial<\/strong>. The study demonstrated that a novel single-tablet regimen combining <strong>bictegravir<\/strong> and <strong>lenacapavir<\/strong> successfully maintained HIV suppression in virologically suppressed adults. The regimen was found to be <em>non-inferior<\/em> to current standard therapies and was generally well tolerated, marking a significant milestone for the company\u2019s long-acting HIV portfolio.<\/p>\n<p>In market operations, <strong>CME Group<\/strong> issued a notice regarding its <strong>Globex Natural Gas<\/strong> futures and options. Trading is scheduled to pre-open at <strong>12:45 CT<\/strong> and officially open at <strong>12:50 CT<\/strong>. While all acknowledged <strong>Good &#39;Til Cancelled (GTC)<\/strong> orders will remain active, the exchange confirmed that all <strong>Day orders<\/strong> and today\u2019s <strong>Good &#39;Til Date (GTD)<\/strong> orders will be cancelled, requiring traders to re-enter their positions for the afternoon session.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways St. Louis Fed President Alberto Musalem signaled support for Kevin Warsh, expecting a continued commitment to the dual 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