Walsh Faces Tough Decision as Trump Pressure Mounts and Inflation Persists

Fed Chair Walsh is facing a tough decision at next week's meeting as Trump continues to pressure for rate cuts despite inflation remaining above the 2% target.

Bloomberg columnist Claudia Sahm suggests that raising rates might become a viable option again, citing the risk of inflation resurging and staying high for an extended period.

The Federal Reserve has three possible policy paths: raising rates without Walsh's support, holding steady, or Walsh leading a rate hike to defend credibility with action.