Warsh's Rate Hike Gambit May Pay Off with Trump Approval

The Federal Reserve is set to meet this week, and despite recent data showing inflation has slowed, it's highly unlikely that interest rates will be raised. New Fed Chair Kevin Warsh has announced five task forces to review the central bank's methods and operations, but any decisions on rate hikes would come before the results are due by year-end.

Raising rates might seem counterintuitive, given the current economic conditions, but it could have several benefits for Warsh. One potential advantage is winning the approval of President Donald Trump, who has been critical of the Fed in the past.