Warsh Expected to Buck Trump on Interest Rates as Fed Prepares to Hike

As Federal Reserve Chair Kevin Warsh prepares to make a crucial decision on interest rates, he finds himself at odds with President Donald Trump. Financial markets are anticipating a rate hike, but Trump wants the Fed to cut or leave rates unchanged.

Economists expect that on Wednesday, the Fed will side with the markets and raise its key rate by a quarter point. This would be the first increase in three years and push the benchmark rate to about 3.9%.

Warsh has boxed himself into a rate hike after delivering a high-profile speech last month warning that inflation remains too far above the Fed's 2% target. A recent report showing inflation is still stubbornly high has solidified investors' expectations of a rate increase.