Fed Chair Kevin Warsh Defies Trump by Raising Rates Again
The Federal Open Market Committee (FOMC) unanimously raised interest rates at its September meeting, bringing the federal funds rate to a range of 3.75% to 4%. This decision defied President Donald Trump's repeated calls for lower rates and marked another instance where Fed Chair Kevin Warsh has gone against the president’s wishes. The move comes amid ongoing inflation concerns and ahead of midterm elections in November, as affordability remains a key issue. Warsh faced speculation about his stance on monetary policy after being nominated by Trump earlier this year. While he had previously suggested alternative methods for measuring inflation—such as using a trimmed mean PCE index—the recent rate hike indicates a hawkish approach. During the post-FOMC press conference, Warsh's comments hinted at potential further hikes if economic data supports it. Market expectations suggest another possible increase in October or December, with over 58% chance of an October hike and more than 90% probability for higher rates by year-end.
Topics: Federal Reserve FOMC inflation interest rates