Trump Attacks New Fed Chair, Creating Uncertainty Ahead of Rate Decision
US President Donald Trump has launched his first attack on Kevin Warsh, the newly appointed Fed chair, calling for lower interest rates. This marks the end of the Warsh-Trump honeymoon.
Warsh's appointment was seen as a compromise between Trump and the Senate, but now it seems that Trump is trying to exert pressure on the Fed to cut rates despite the market expecting a hike to counter inflation.
The latest Gallup survey shows that just 33% of US adults think the Fed board is doing an 'excellent' or 'good' job, while 27% say they are doing a 'poor' job. The net positive rating of 6% is the lowest since at least 2003.
The scenarios heading into the next Fed meeting illustrate how big a bind Trump has created for policymakers: they can hike rates without Warsh, stay on hold, or Warsh supports a hike.