Trump Urges Fed's Warsh to Cut Rates, Not Raise Them Before 2026 Ends
Updated
Updated · Bloomberg · Jun 10
Trump Urges Fed's Warsh to Cut Rates, Not Raise Them Before 2026 Ends
3 articles · Updated · Bloomberg · Jun 10
Summary
Donald Trump publicly told Kevin Warsh there is “no reason” to raise interest rates and said the Fed should lower them, signaling White House pressure before Warsh’s first policy meeting.
Bond markets have swung from pricing rate cuts to pricing increases before year-end because the economy has held up better than expected despite the Iran war and higher energy prices.
That resilience complicates Warsh’s unofficial mandate from the White House to find room for easier policy, even as inflation pressure appears to be easing.
The clash sets up an early test of Fed independence, with Trump pushing for lower borrowing costs while market pricing points the other way.