Fed Expected to Hike Rates Amid Trump Opposition

A majority of economists expect the US Federal Reserve to raise interest rates by a quarter point at its September policy meeting, despite President Donald Trump's calls for cuts.

According to a Reuters poll, 86 out of 101 forecasters believe a hike is likely, with many citing rising inflation as a key factor. The Fed's target range would increase to 3.75-4% if rates are raised, marking the first US increase since July 2023.

Trump has expressed his opposition to rate hikes, stating that the US should have the lowest interest rates in the world. However, National Economic Council Director Kevin Hassett said that Trump will defend the independence of Fed Chair Kevin Warsh, who has been running the rate-setting committee since May 2026.