Banxico faces potential Fed rate hikes as Warsh signals tightening bias

Mexican central bank (Banxico) is bracing for possible Federal Reserve rate hikes, with sentiment that Fed Governor nominee Kevin Warsh leans toward inflation control and monetary tightening. This suggests a more hawkish Fed path, which could pressure the Mexican peso and constrain Banxico's easing cycle. The exact timing and magnitude of Fed moves remain uncertain, but the directional risk is for tighter US monetary policy.