Warsh's Rate Hike Gamble Could Pay Off With Trump Approval

Despite the recent slowdown in inflation, it's unlikely that the Federal Reserve will raise interest rates at their upcoming meeting this week. The five task forces established by new Fed Chair Kevin Warsh to review the central bank's methods and operations are still gathering data and results aren't expected until year-end.

However, raising rates could serve multiple purposes for Warsh, including gaining approval from President Donald Trump. Trump has expressed support for Warsh and believes he will make good decisions, but also thinks that interest rates should be lowered.

The SNB is expected to keep its interest rate at zero until the end of 2027, based on current forecasts for inflation and assuming no major new shocks.