All articles tagged with #central bank interest rates
Fed left rates unchanged for the fifth straight meeting amid stubborn inflation and internal divisions; three officials had argued for hikes, while markets sold off with stocks down and yields up as Warsh, in his second term as chair, weighs data before any future move (potential September hike).
Trump is pressing for lower interest rates, but a growing chorus of Federal Reserve policymakers signals the next move could be higher rates if inflation remains broad-based, with officials like Hammack, Logan and others hinting at hikes even as markets pricing show a plausible September increase after a likely July pause.
Global investors pushed the dollar to a 13-month high on the allure of the U.S. AI boom and the prospect of higher interest rates, with bets on a Fed move later this year overshadowing concerns about Trump’s policymaking.
Trump’s new Federal Reserve chair Kevin Warsh faces a dilemma as inflation sits at a three-year high and the president expects lower borrowing costs; at his first policy meeting, Warsh may have to raise interest rates to curb inflation, testing the Fed’s independence and his alignment with Trump.
As Powell’s term as Fed chair expires on May 15, the Trump administration appears poised to challenge his plan to stay on as acting chair if Senate Republicans do not confirm Kevin Warsh, setting up a confrontation over who leads the Fed and potentially shaping its policy path depending on Warsh’s fate.
The Federal Reserve kept rates unchanged at its first meeting of 2026 after three cuts late in 2025, signaling a patient stance as hiring slows but the broader economy remains resilient, while inflation’s trajectory will determine the next moves.