Fed Credibility at Stake as Warsh Faces Trump Over a Rate Increase
TL;DR
Inflation remains stubborn and markets are pricing a rate hike, placing Fed chair Kevin Warsh on a collision course with President Trump. Analysts say the Fed must act to defend its credibility even if it draws Trump’s ire, with the timing of a first rate increase likely to come before the midterm elections as oil and geopolitical tensions keep inflation elevated.
- Warsh and Trump on collision course as investors expect Fed to raise rates Financial Times
- Kevin Warsh should raise interest rates The Economist
- Fed’s Warsh on Collision Course With Trump as Rate Hike Looms Bloomberg.com
- Analysis: Hot inflation data sets up a Fed rate hike. What happens if Warsh wavers CNBC
- Wall Street thought the Powell hike was over. Now Kevin Warsh has his ‘back against the wall’ fortune.com
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