Warsh on Collision Course With Trump as Rate Hike Looms

Kevin Warsh, the hand-picked Federal Reserve chairman by President Donald Trump, is facing pressure to hike interest rates to tame elevated inflation. In a White House ceremony in May, Trump praised Warsh and encouraged him to be 'totally independent,' saying, 'Just do your own thing.'

However, with Friday's report on consumer prices showing core inflation growing at a hotter-than-expected pace in August, investors' expectations for a rate increase at the Fed's Sept. 15-16 meeting have risen above 85% in futures markets.

This puts Warsh on a collision course with Trump as he navigates the delicate balance between keeping rates low to support economic growth and addressing inflation concerns.