Fed Expected to Hike Interest Rates Despite Trump's Disapproval

The Federal Reserve is expected to raise interest rates on Wednesday for the first time since 2023, despite President Donald Trump's calls for lower borrowing costs.

This decision would put Chairman Kevin Warsh at odds with the White House, as a majority of policymakers believe that inflation will not cool sufficiently without at least one rate increase.

A recent hot inflation report has tipped the scales in favor of a near-term rate hike, with investors seeing a greater than 90% chance of a quarter-point move this week and pricing in another hike by the end of the year.