Warsh Talk: Trump's Calls to Fed Chairman Reignite Independence Concerns
US Federal Reserve Vice Chair for Supervision Michelle Bowman reassured that the Fed's policy is 'well positioned' to return inflation to its 2% target. However, the recent weak payrolls and continued above-target inflation have raised concerns about the Fed's approach.
According to a report in the Wall Street Journal, President Donald Trump has been seeking advice from Kevin Warsh, the new head of the Federal Reserve, on various economic issues. This has sparked fears that the White House is interfering with the Fed's independence.
The upcoming US CPI report and PPI release are crucial for shaping expectations for core Personal Consumption Expenditures (PCE) later this month. Underlying consumer inflation has been running above target for around five years, while producer price pressures have re-accelerated.