Warsh Faces Rate Hike Pressure Despite Trump's Demands

Despite President Trump's repeated calls for rate cuts and his appointment of Kevin Warsh as Fed Chair, traders are predicting an almost certain Federal Reserve rate hike next week. The odds stand at 86.9%, according to the CME FedWatch Tool.

Trump spent months criticizing Jerome Powell for being slow to cut rates, but since Warsh's appointment in May, he has yet to lower interest rates. In fact, his two meetings with the Federal Open Market Committee (FOMC) have resulted in no changes.

Economist Heather Long argues that a rate hike could actually help low-income Americans by cooling prices and preventing inflation from becoming entrenched.