Fed Chair Warsh Poised to Defy Trump on Rate Hike

Federal Reserve Chair Kevin Warsh is facing pressure from President Donald Trump to keep interest rates low, but economists expect him to side with financial markets and raise the benchmark rate on Wednesday.

Warsh has been warning about inflation since taking over in May, and a recent report showed that prices are still too high. A quarter-point rate increase would be the first in three years and push the Fed's benchmark rate to around 3.9%.

The White House is pushing for lower rates, but if the Fed doesn't hike its key rate Wednesday, it risks being seen as giving in to pressure from the President, which could undercut its credibility with financial markets.