Forex
Warsh Defies Trump with Rate Hike Despite Credibility Questions
US Federal Reserve chair Kevin Warsh has delivered an interest rate hike that many economists believe is necessary to combat surging inflation, despite pressure from President Donald Trump.
The Fed raised rates by 25 basis points to between 3.75 and 4.00 per cent on Wednesday, with policymakers signaling at least one more rate hike before year-end.
Trump has launched an unprecedented assault on the Fed's independence since taking office, initiating a criminal probe into Warsh's predecessor and attempting to fire another Fed governor in his quest for lower rates to spur economic activity.
However, Warsh defied Trump's wishes by voting for the rate hike, and delivered a muted response when asked about their conversation prior to the meeting.