Warsh Faces Pressure to Hike Rates as Inflation Tops Five-Year Mark

The Federal Reserve is set to meet on Tuesday and Wednesday to discuss interest rates, but Fed Chair Kevin Warsh faces growing pressure to hike rates soon. This move could provoke President Donald Trump, who appointed him.

Warsh has emphasized that the Fed will get inflation back to 2% without specifying how. However, in congressional testimony earlier this month, he said the Fed has 'no tolerance' for higher inflation and pledged to deliver price stability.

Some Fed officials are growing impatient with inflation's stubbornness, despite some signs of improvement. Core inflation cooled noticeably in June, but has been stuck at around 3% or higher since 2023. Without noticeable progress soon, rate hikes will be needed, according to some Fed officials.