{"id":64086,"date":"2026-07-01T17:08:13","date_gmt":"2026-07-01T21:08:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-chair-warsh-signals-easing-inflation-risks-u-s-treasury-unveils-trump-accounts-fund-lineup\/64086\/"},"modified":"2026-07-01T17:08:13","modified_gmt":"2026-07-01T21:08:13","slug":"fed-chair-warsh-signals-easing-inflation-risks-u-s-treasury-unveils-trump-accounts-fund-lineup","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-chair-warsh-signals-easing-inflation-risks-u-s-treasury-unveils-trump-accounts-fund-lineup\/64086\/","title":{"rendered":"Fed Chair Warsh Signals Easing Inflation Risks; U.S. Treasury Unveils &#8220;Trump Accounts&#8221; Fund Lineup"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Federal Reserve Chair Kevin Warsh<\/strong> stated that <strong>inflation risks have eased<\/strong>, though he reaffirmed a commitment to the <strong>2% price stability goal<\/strong> and rejected the use of &quot;forward guidance.&quot;<\/li>\n<li>The <strong>U.S. Treasury<\/strong> officially selected <strong>BlackRock (<a href=\"\/stock\/BLK\">BLK<\/a>)<\/strong>, <strong>Vanguard<\/strong>, and <strong>State Street (<a href=\"\/stock\/STT\">STT<\/a>)<\/strong> ETFs for the new <strong>&quot;Trump Accounts&quot;<\/strong> program, which launches <strong>July 4, 2026<\/strong>.<\/li>\n<li><strong>U.S. June light vehicle sales<\/strong> reached <strong>16.52 million units<\/strong>, significantly outperforming the estimated <strong>16.10 million<\/strong>, signaling continued consumer resilience.<\/li>\n<li><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> is reportedly preparing a major product refresh for <strong>2027<\/strong>, including new <strong>iPad Pro<\/strong> models and a redesigned entry-level <strong>MacBook Pro<\/strong>.<\/li>\n<li>Geopolitical tensions showed signs of cooling as <strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> fell<\/strong> following reports of &quot;positive progress&quot; in indirect <strong>U.S.-Iran technical talks<\/strong> mediated by Qatar.<\/li>\n<\/ul>\n<h2>Fed Chair Warsh Repudiates Forward Guidance<\/h2>\n<p>Federal Reserve Chair <strong>Kevin Warsh<\/strong> delivered a clear message to markets on Wednesday, stating that while <strong>inflation risks have eased<\/strong>, the central bank remains data-dependent and will no longer provide &quot;forward guidance.&quot; Speaking at a central banking forum in Portugal, Warsh emphasized that the Fed will focus on delivering <strong>price stability<\/strong> and that those expecting the bank to tolerate inflation above <strong>2%<\/strong> would be &quot;disappointed.&quot;<\/p>\n<p>The shift away from signaling future rate moves marks a significant departure from previous administrations. Warsh urged investors to focus on <strong>real-time economic data<\/strong> rather than central bank rhetoric. Despite recent volatility, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPX\">SPX<\/a>)<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/DJI\">DJI<\/a>)<\/strong> turned positive following his remarks, as the perceived risk of immediate aggressive rate hikes appeared to soften.<\/p>\n<h2>Treasury Names Investment Lineup for &quot;Trump Accounts&quot;<\/h2>\n<p>The <strong>U.S. Department of the Treasury<\/strong> has finalized the initial investment menu for the <strong>Trump Accounts<\/strong> program, a tax-advantaged savings initiative for American children. The <strong>State Street SPDR Portfolio S&amp;P 500 ETF (<a href=\"\/stock\/SPYM\">SPYM<\/a>)<\/strong> will serve as the default investment at the program&#39;s <strong>July 4 launch<\/strong>.<\/p>\n<p>Treasury also selected four additional low-cost index funds for the lineup:<\/p>\n<ul>\n<li><strong>BlackRock (<a href=\"\/stock\/BLK\">BLK<\/a>)<\/strong>: iShares Core S&amp;P 500 ETF (<a href=\"\/stock\/IVV\">IVV<\/a>) and iShares Core S&amp;P Total U.S. Stock Market ETF (<a href=\"\/stock\/ITOT\">ITOT<\/a>).<\/li>\n<li><strong>Vanguard<\/strong>: Vanguard Total Stock Market ETF (<a href=\"\/stock\/VTI\">VTI<\/a>).<\/li>\n<li><strong>State Street (<a href=\"\/stock\/STT\">STT<\/a>)<\/strong>: SPDR Portfolio S&amp;P 1500 Composite Stock Market ETF (<a href=\"\/stock\/SPTM\">SPTM<\/a>).<\/li>\n<\/ul>\n<p>All selected funds carry <strong>expense ratios between 0.02% and 0.03%<\/strong>, well below the <strong>0.1% statutory fee cap<\/strong>. Vanguard also announced its intention to support <strong>account rollovers<\/strong> once official Treasury guidance is issued.<\/p>\n<h2>Corporate and Economic Developments<\/h2>\n<p><strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> is reportedly timing a massive hardware overhaul for <strong>2027<\/strong>, coinciding with the iPhone&#39;s 20th anniversary. According to <em>Bloomberg<\/em>, the tech giant is testing four new <strong>iPad Pro<\/strong> models and a redesigned <strong>MacBook Pro<\/strong>. These devices are expected to feature the <strong>M7 chip<\/strong> series, which prioritizes on-device <strong>artificial intelligence<\/strong> and high-performance graphics.<\/p>\n<p>In the automotive sector, <strong>June light vehicle sales<\/strong> surprised to the upside, hitting a seasonally adjusted annual rate of <strong>16.52 million<\/strong>. This beat the consensus estimate of <strong>16.10 million<\/strong>, suggesting that high interest rates have not yet significantly dampened demand for new vehicles.<\/p>\n<p>Separately, <strong>BlackRock (<a href=\"\/stock\/BLK\">BLK<\/a>)<\/strong> provided an update on its <strong>Closed-End Fund (CEF) Discount Management Programs<\/strong>. The firm noted that most of its funds are currently trading below the <strong>10% discount threshold<\/strong> required to trigger a tender offer. However, the <strong>BlackRock Science and Technology Term Trust (<a href=\"\/stock\/BSTZ\">BSTZ<\/a>)<\/strong> and <strong>BlackRock Health Sciences Term Trust (<a href=\"\/stock\/BMEZ\">BMEZ<\/a>)<\/strong> remain above the threshold, potentially necessitating repurchases later this year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Federal Reserve Chair Kevin Warsh stated that inflation risks have eased, though he reaffirmed a commitment to the 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