Kevin Warsh's Fed debut comes at a pivotal moment for global monetary policy

Get ready for one of the busiest weeks of the year in global monetary policy. US investors will have all eyes focused on Wednesday's Federal Reserve meeting — Kevin Warsh's first as chairman. But the Fed is only one piece of a globally busy stretch in which four of the world's major central banks deliver policy decisions in less than three days. The Reserve Bank of Australia kicked things off on Tuesday, followed by the Bank of Japan later in the day. The Federal Reserve follows on Wednesday, and then the Bank of England closes out the run of meetings on Thursday. The concentration of central bank decisions comes at a moment when policymakers around the world are confronting the classic question of an energy shock: whether to address concerns over inflation or growth. President Donald Trump speaks to Kevin Warsh (L) after he was sworn in as the new Chairman of the Federal Reserve in the East Room of the White House on May 22, 2026 in Washington, D.C. (Roberto Schmidt/Getty Images) · Roberto Schmidt via Getty Images For much of the past several years before the war, central banks confronted a steady picture: Inflation was easing, economic growth remained resilient, and policymakers could focus on calibrating the pace of policy normalization. Yet, 2025 and 2026 both brought major shocks. Read more: How jobs, inflation, and the Fed are all related Trade tensions from the Trump administration injected fresh uncertainty into the global growth outlook, threatening supply chains and business investment. More recently, the Iran conflict sent oil prices surging, raising fears that higher energy costs could spill over into broader inflation. The combination has complicated the outlook for central bankers globally. Higher oil prices tend to push up inflation by raising the cost of fuel, transportation, and a broad range of goods and services. Under normal circumstances, that would argue for keeping interest rates elevated for longer, or raising them further. But energy shocks can also act as a tax on consumers and businesses, slowing economic activity as households spend more at the gas pump and companies face higher operating costs. "The two global macro forces — the cyclical and energy shocks — may be countervailing on growth but they are amplifying on inflation," JPMorgan strategist Alex Gallin wrote in a recent note. "This has prompted a sharp shift in policy discussion and, in some cases, in action." The result is a policy backdrop that looks increasingly uncomfortable for central bankers. While growth concerns might ordinarily argue for lower rates, renewed inflation pressures are making it difficult for policymakers to signal easier policy. Christine Lagarde, president of the European Central Bank, attends "Che Tempo Che Fa" TV Show on May 24, 2026 in Milan, Italy. (Stefania D'Alessandro/Getty Images) · Stefania D'Alessandro via Getty Images That tension is likely to be reflected across this week's meetings. The European Central Bank offered the first major example of that shift last week, raising interest rates by a quarter percentage point in its first hike in nearly three years.