Forex
Trump vs. Fed: Rate Hike Odds Soar as Markets Plummet
US President Donald Trump continues to push for lower interest rates, despite Federal Reserve Chair Kevin Warsh indicating a rate hike is likely. The CME Fedwatch tool currently shows a 66% chance of a September rate increase.
Warsh has maintained his stance on monetary policy since becoming Fed chair, and it seems he will not follow Trump's advice to cut borrowing costs. In fact, Warsh emphasized the need for the central bank to focus on inflation during his recent Jackson Hole speech.
The markets responded negatively to Warsh's comments, with Wall Street indices plummeting and precious metals like gold and silver losing value. Bitcoin also dropped nearly 1% to around $77,778 as concerns over Fed rates put pressure on the cryptocurrency.