Phelan Warns Against Fed Rate Hike Amid Declining Inflation

The Federal Reserve is set to announce its rate decision today, and White House Adviser Phelan warns that a Fed rate hike would be a mistake. According to Phelan, recent inflation data shows that inflation has trended lower over the past three months, making a hike unnecessary.

Phelan pointed to major gauges such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) index, which have shown declining inflation rates. He noted that the Fed held off on raising rates months ago when inflation was higher, and it doesn't make sense to raise rates now.

The debate comes as President Donald Trump has pushed the Fed to lower interest rates. A hike would move policy in the opposite direction of what Trump has publicly favored. Phelan argued, 'No matter how you measure it, inflation is coming down. They didn’t choose to raise rates 3 months ago when inflation was higher. It doesn’t make sense to raise rates now in my view.'

The Fed's decision will have significant implications for markets, particularly Bitcoin (BTC). A hike would pressure BTC by making non-yielding assets less attractive next to bonds.