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Fed Chair Warsh faces Trump pressure as investors price rate hikes
Financial Times World·US·3 days ago
A Financial Times–Booth School survey shows most economists believe the Fed should raise rates to curb inflation, directly challenging President Trump's calls for cuts. This signals a potential policy conflict between the White House and the central bank, with market implications for rates and the dollar.
The Federal Reserve is highly likely to raise interest rates this week, marking the first hike since 2023, driven by persistent inflation. This decision is expected despite direct public opposition from President Trump, setting up a significant policy conflict between the White House and the central bank. The outcome will test the Fed's independence and determine the near-term rate path.