Macquarie Sees Fed Hike Amid Trump-Warsh Autonomy Debate

Macquarie, a financial institution, expects the Federal Reserve to raise interest rates in October despite comments from President Donald Trump suggesting that Fed Chair Kevin Warsh has limited autonomy over monetary policy decisions.

Trump stated that Warsh's ability to set interest rate policy is 'up to him a little bit, but not completely.'

Macquarie notes that an FOMC majority can override Warsh's preference to keep rates on hold, and the Fed Chair is unlikely to want to be among dissenters.