Trump Calls for 1% Fed Rate as Warsh Hikes, Warns of More
Trump demanded the Fed cut rates to 1% after Warsh raised them to 3.75-4%, threatening more hikes. Bitcoin and gold reacted.
Trump demanded the Fed cut rates to 1% after Warsh raised them to 3.75-4%, threatening more hikes. Bitcoin and gold reacted.
The Fed raised rates by 25bps to 3.75%-4.00% unanimously and projected further hikes, signaling a higher-for-longer path.
Fed's Warsh said the economy looks to be strengthening, inflation remains too high, and the FOMC has not met the confidence bar on underlying inflation.
The Bank of Canada's Governing Council sees near-term inflation staying elevated, while markets anticipate over 100 basis points of rate hikes.
Kevin Warsh reduces signalling in the FOMC statement; a close vote could rock markets.
The Atlanta Fed GDPNow model raised its Q3 growth estimate to 5.1% from 4.4% as consumer and government spending forecasts increased.
Fed Chair Warsh faces his first major credibility test as markets see a 91% rate hike chance, with potential political and market fallout.
UK inflation rose to 3.1% in August, a five-month high, ahead of the Bank of England's interest rate decision.
Markets expect a 25 bps Fed hike today, testing Kevin Warsh's credibility on forward guidance and independence.
The Fed is set to hike by 25 bps, with traders watching the dot plot for clues on further tightening.
UK headline CPI rose to 3.1% in August, while core inflation held steady at 2.6%, in line with forecasts.
Fed faces overwhelming market pressure to hike rates as inflation persists and yields surge, with a hold seen as riskier.
US poverty fell to 10.2% in 2025 and median income hit a record $87,460, though inflation has since accelerated.
UK August CPI data due today, with headline seen rising to 3.1%. Core and services inflation in focus ahead of BOE decision.
UBS's daily note identifies three lasting themes: growth matters more than rate hikes, AI demand rises despite calls for regulation, and earnings drive markets.