Trump gives blasé response to rate hike possibility
Summary
President Trump showed a relaxed attitude about the possibility that new Federal Reserve Chair Kevin Warsh might raise interest rates, despite previously criticizing the former chair for not cutting rates enough. Trump said he will let Warsh make his own decisions and expressed confidence in Warsh’s abilities. Meanwhile, markets think a rate increase is now more likely than a cut this year.Key Facts
- President Trump criticized former Fed Chair Jerome Powell for not lowering interest rates enough.
- Trump said he will allow incoming Fed Chair Kevin Warsh to do what he thinks is best.
- Financial markets now expect a possible interest rate hike in 2024 rather than a cut.
- The Federal Reserve makes interest rate decisions independently from the President once the Fed Chair is appointed.
- Treasury Secretary Scott Bessent predicts one or two more inflation increases before a significant slowdown.
- Recent inflation rises are linked to energy supply problems caused by the conflict involving Iran.
- Minutes from the Federal Reserve’s April meeting showed some officials disagreed on expecting lower rates soon.
- The CME FedWatch tool estimates a 60% chance of at least one rate hike before the end of 2024.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.