Fed Rate Decision Today: Warsh Weighs Quarter Point Hike
The Federal Reserve, led by Chairman Kevin Warsh, is set to announce its rate decision today at 11:30 pm IST. The big question on everyone's mind is whether Warsh will raise interest rates or hold back.
A Reuters poll of over 100 economists found a clear swing towards expecting a rate hike, with close to 90% chance of a quarter point hike taking the Fed's key rate to 3.75%-4.00%. KPMG's chief economist Diane Swonk suggested that this might be just 'the opening move, not the final one,' implying further rate hikes may follow.
However, Warsh's decision may be influenced by his appointment by President Donald Trump, who has repeatedly expressed a desire for lower interest rates. Raising rates barely four months into the job could attract similar criticism to that faced by previous Fed chairs.