Trump Backs Warsh Amid Interest Rate Pressure

US President Donald Trump expressed respect for Federal Reserve Chairman Kevin Warsh, saying he will 'do what he has to do' on interest rates. This comes after Warsh stated in a recent speech that the US central bank would have work to do if policymakers don't get confidence that inflation is heading down to 2%. Trump repeatedly urges lowering interest rates, claiming the US should pay the lowest interest rates anywhere in the world.

The Federal Reserve's preferred Personal Consumption Expenditures Price Index remained at 3.7% on an annual basis as of July. With affordability top of mind for voters ahead of November's midterm elections, central bankers will meet next month to consider any interest rate changes.