Trump backs 'fantastic' Warsh while calling for lower rates and citing 'bad intentions' of other Fed officials
📰 source: cnbc_topnews · 💼 business
president donald trump on monday voiced support for federal reserve chair kevin warsh while insisting the us should have the lowest interest rates in the world. he questioned the motives of other fed board members, calling them "very political" and suggesting some have "bad intentions." trump spoke to reporters on air force one, two days before the fomc releases its latest rate decision.
markets are pricing in a strong chance officials will hold rates steady, with about a 1-in-3 chance of a quarter-point hike, according to cme group's fedwatch tool. dallas fed president lorie logan, a voting fomc member, recently said rates should be "modestly higher." trump, however, argued rates should be lowered and that the economy could grow at 8-12% annualized. the fed's benchmark rate is currently 3.5%-3.75%, similar to the bank of england but above the ecb's 2.25%, japan's 1%, and china's 3%.
why it matters: president trump publicly pressures fed to cut rates ahead of fomc decision, raising concerns over central bank independence.
source: cnbc_topnews
sentiment: +0.30 · impact: 0.70