Trump turns up the heat on Warsh as Fed rate hike looms
Ten days ahead of the next Federal Reserve meeting, the Trump administration looks to be in a full-court press to halt a rate hike in its tracks.
TL;DR
- The Trump administration is engaged in a public campaign to stop the Federal Reserve from raising interest rates.
- President Trump, Vice President, Treasury Secretary, and an economic counselor have all publicly urged the Fed not to raise rates.
- President Trump has threatened to halt trade with countries with trade surpluses with the U.S. unless the Fed cuts rates.
- Administration officials argue that economic growth does not necessarily cause inflation and that supply-side measures increase economic capacity.
- Some Fed officials are concerned that inflation has been above the Fed's 2% target for five years.
- Market focus is on upcoming CPI and PCE reports to gauge inflation and potential Fed action.
- Fed Chairman Warsh has stated the president has had no impact on his decisions and cited Fed independence.