Fed Rate Hike Odds Near 90% as Trump's Economy Falters

Jerome Powell's departure from the Federal Reserve has not led to the cheap money that President Trump had promised. In fact, the odds of a rate hike next week are near 90%, according to traders using the CME FedWatch Tool.

Trump had been critical of Powell, saying he was slow and late in lowering rates. However, Powell did lower rates three times in late 2022, finishing on December 10.

The new chair, Kevin Warsh, has not cut rates once since being appointed by Trump in May. Analysts are questioning whether Warsh will actually raise interest rates in his first move as Fed Chair.