Trump Gives Warsh Free Rein on Interest Rates
US President Donald Trump expressed his respect for Federal Reserve Chairman Kevin Warsh on Monday, stating that he will do what he has to do regarding interest rates. This comment comes after a recent speech by Warsh in which he mentioned that the central bank would have work to do if policymakers don't get the confidence they need that inflation is heading down to 2%. Trump has repeatedly urged lowering interest rates, claiming that the US should pay the lowest interest rates anywhere in the world.
The Fed's preferred Personal Consumption Expenditures Price Index remained at 3.7% on an annual basis as of July. This figure is a concern for voters ahead of November's midterm elections, with affordability being top of mind. Central bankers will meet next month to consider any interest rate changes.