Federal Reserve Is Expected to Raise Its Benchmark Rate, Defying President Trump's Demands
Traders see a 90% chance of a hike as officials weigh stubborn inflation and rising oil prices before the midterm elections.
- The Federal Reserve is widely expected to lift its short-term interest rate on Wednesday for the first time in three years, a move placing the central bank at odds with President Donald Trump's support for a cut.
- Recent inflation reports show prices remain stubbornly high and core inflation picked up in August, prompting Fed Chair Kevin Warsh to argue at the Jackson Hole, Wyoming conference that the central bank had not yet achieved its goal of putting inflation in check.
- Traders now see a 90% chance the Fed will hike Wednesday, according to futures prices, which also suggest traders anticipate three total increases occurring in September, December, and March.
- Kevin Hassett, President Donald Trump's top economic adviser, said Sunday that Trump "100% respects the independence of Kevin Warsh," yet warned in a Fox News interview that the Fed should avoid hiking rates so close to the midterm elections.
- The Iran war is causing sharp increases in oil and gas prices, keeping inflation above the Fed's 2% target. Economist Kristin Forbes said, "I don't see any end to the war in Iran right now.
11 Articles
11 Articles
Federal Reserve is expected to raise its benchmark rate, defying Trump’s demands - Boston News, Weather, Sports
WASHINGTON (AP) — The Federal Reserve is widely expected to lift its short-term interest rate Wednesday for the first time in three years to fight stubbornly high inflation, a move...
The FED starts a meeting this Tuesday marked by the resurgence of inflation and oil above $100. The market assigns more than 90% probability to a rise of 25 basis points. Read more
From today the Federal Reserve is reunited to decide on the rates tomorrow, with the markets that now stand between 90% and 93% probability of an increase of a quarter of a point. Meanwhile the yield of the German Bund to the maximum since 2009, the oil remains above the 100 dollars. International Economy / Federal Reserve, Government Bonds, Monetary Policy, Central Banks, Petroleum
Coverage Details
Bias Distribution
- 60% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
