Quick Read – Kevin Warsh took over as Fed Chair on May 22 facing immediate political pressure from Trump to slash rates to 1% or lower. – Rate cuts are virtually impossible with CPI at 4.2% and PCE at 3.8% annually, figures that remain well above the Fed’s 2% target. – Warsh is…
a lose-lose position: cutting rates pleases Trump but damages Fed credibility, while holding firm risks alienating the president. – Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today
Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here. On May 22, Kevin Warsh officially took over from Jerome Powell as head of the Federal Reserve.
And his first meeting as Fed Chair is shaping up to be a political and economic minefield. Trump wants rate cuts, but inflation is moving the other way Trump has repeatedly argued that the Fed should lower its benchmark interest rate to stimulate economic growth and reduce costs for cash-strapped borrowers — even as inflation has told the opposite story. In early June, Trump told NBC’s Meet the Press, “There’s no reason to raise interest rates…When they raise interest rates, they try and kill success.