Federal Reserve is expected to raise its benchmark rate, defying President Trump's demands
Markets expect a quarter-point increase as inflation stays above target and the move would be the first since July 2023, traders said.
- Federal Reserve Chairman Kevin Warsh will announce the central bank's policy decision on Wednesday, with markets heavily betting on a 0.25 percentage point rate hike to a 3.75%-4.00% range.
- Surging oil prices above $100 and August payrolls increasing by 162,000 have pressured the Fed, as inflation remains 140 basis points above the 2% target. This reverses 2026 expectations of rate cuts.
- Markets now assign 90.7% probability to the hike, while producer prices rose 5.4% over the prior year and headline inflation increased 3.4% year over year. Core CPI rose 2.4%.
- President Donald Trump's Republican party defends slim congressional majorities before November elections, adding political sensitivity to Warsh's decision despite Trump's earlier expectation that the Fed chair would cut rates.
- Economists expect the Fed to signal further tightening ahead, as Chairman Warsh attempts to maintain institutional credibility by walking a 'fine line' in his post-meeting remarks without providing forward guidance.
229 Articles
229 Articles
Federal Reserve Chairman Kevin Warsh is under intense pressure. If he raises interest rates tonight, Donald Trump will be angry. If he doesn't, the US economy risks falling into a crisis of confidence.
Fed Interest Rate Decision: The US stock market is expected to see a sharp decline as the US Federal Reserve may raise interest rates. If this increase does not occur, the market may trade flat or even bullish.
Trump’s Fed Chair Is About To Pull The One Move Trump Really Won’t Like
Donald J. Trump has spent months demanding that the Federal Reserve cut interest rates, but he may be in for another unpleasant surprise. The Fed is widely expected to raise its benchmark interest rate by a quarter-point Wednesday—the first increase in three years—as officials confront inflation that remains stubbornly above the central bank’s 2% target, the Associated Press reports. Rising oil prices have added even more pressure, making it har…
DUE to rising inflation and oil prices, the Fed is raising interest rates for the first time since 2023, while strong American spending supports this major turnaround.
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