Warsh Defies Trump Again: Will He Raise Rates Before Midterms?
Federal Reserve Chair Kevin Warsh has defied President Donald Trump by raising interest rates, and there's a possibility he may do so again. The FOMC unanimously voted to raise the federal funds rate by a quarter point to a range of 3.75% to 4%, despite Trump's desire for a cut.
Warsh's decision to hike rates is seen as a departure from Trump's wishes, who has been vocal about wanting lower interest rates since his second term began. The move also comes just weeks before the midterm elections, with affordability issues on the minds of many Americans.
During his post-FOMC meeting press conference, Warsh suggested that inflation is not slowing down as quickly as expected, stating, 'We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed.'