Fed Raises Interest Rates Amid Trump's Disapproval
The Federal Reserve is expected to raise interest rates for the first time since July 2023, despite President Donald Trump's potential disapproval. According to analysts, there's a 90% chance of an increase in interest rates today at 2 pm ET.
Fed Chair Kevin Warsh has been relatively quiet about his plans, but most traders are betting on a quarter-percentage-point hike to help bring inflation down to the Fed's 2% target. However, this move risks unleashing Trump's wrath, as he has previously bullied the Fed chair for not lowering rates.
Trump's administration wants lower interest rates to ease borrowing costs and boost consumer spending before the midterm elections in 48 days. But raising rates could make borrowing more expensive for new car loans and some mortgages, and credit card interest rates are already on track to reach record highs.