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White House ups pressure on Kevin Warsh's Fed as Wall Street expects hike
Fortune • • general
Key Points:
- Nearly 60% of investors anticipate a 25 basis points rate hike by the Federal Reserve to 3.75%-4%, while the rest expect a hold, according to CME’s FedWatch tool.
- The strong U.S. labor market, with 162,000 jobs added in August and unemployment steady at 4.1%, alongside persistent inflation at 3.4% above the Fed’s 2% target, supports calls for a rate increase at the September 16 FOMC meeting.
- Analysts from Macquarie, Bank of America, and UBS now expect at least one rate hike in September, with some forecasting two hikes this year, emphasizing that the economic context behind rate moves is crucial.
- President Donald Trump has renewed pressure for rate cuts, warning that if rates do not fall, he may halt trade with countries running trade deficits with the U.S., urging Fed Chair Kevin Warsh to adopt a more dovish stance.
