Trump's Rate Hike Fears: Economists See 86% Chance of Increase

President Donald Trump's hopes of lowering inflation before the midterms may be in jeopardy due to the actions of Federal Reserve Chairman Kevin Warsh. According to economist Justin Wolfers, Warsh is likely to raise interest rates at upcoming meetings to combat inflation, which could make Trump 'very angry'. Wolfers stated that markets are already behaving as if they expect a rate hike, with an 86% chance that it will happen next week.

Inflation ticked up in August, reaching 3.4% from the previous year, and the Federal Reserve may raise rates as soon as next week. Wolfers noted that the cost of oil is a major factor driving inflation, but he doesn't expect prices to drop until there's progress on Iran policy.