Trump-Federal Reserve interest rate policy tension 2026
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Trump pressures Warsh as Fed rate hike looms
Trump denied the Wall Street Journal report, saying he had spoken only once to Warsh while in office.
The Federal Reserve will likely consider raising interest rates at a Sept. 15-16 meeting.
President Donald Trump threatened to halt trade with countries that run trade surpluses with the U.S. unless the Fed cuts interest rates.
Trump doubles down on threat to halt trade with top partners unless Fed cuts rates
National Economic Council Director Kevin Hassett said the Fed will do what it wants to do and that the argument for holding steady would be pretty strong.
The Fed declined to comment on Trump's post.
Trump posted on Truth Social that employers added 162,000 jobs in August.
Vance says Fed should lower interest rates
Vance made the remarks at a White House press briefing when asked by CNBC's Eamon Javers about the Trump administration's view on the U.S. bond market.
JD Vance said the Federal Reserve should lower interest rates.
Vance said lower interest rates would help Americans afford homes.
Fed Governor Waller indicates support for holding rates steady in September
Waller said the three-month inflation rate as measured by the Fed's preferred gauge has slipped from 4.76% in February to 3.05% currently.
Waller said tariff impacts likely have been muted and higher energy prices haven't had a substantial impact in other parts of the economy.
Fed Chairman Kevin Warsh said during a speech at the Fed's annual symposium in Jackson Hole that recent softer monthly inflation readings do not indicate that underlying trends have meaningfully improved.
Fed Chairman Warsh expresses inflation concern at Jackson Hole, signals possible rate hike
Warsh said short-term interest rates are the predominant tool to achieve the dual mandate.
Warsh said a Fed task force examining AI use and economic impact was encouraging but so far had no bearing on current policy decisions.
Warsh said that none of the inflation measures are perfect but they all tell a similar story that inflation is running above the 2% target.
Fed's Warsh warns inflation progress insufficient, hints at rate hikes at Jackson Hole
Warsh said that while summer PCE and CPI readings were better than expected, they did not indicate that underlying trends had meaningfully improved.
The 2-year Treasury yield jumped more than 12 basis points to 4.356% after Warsh's speech.
Following Warsh's remarks, CME FedWatch showed the probability of a rate hike in September rose to approximately 57-60%, up from about 35% the day before.
“have work to do”
Fed Chair Warsh signals possible rate hikes amid elevated inflation
Jon Faust is an economist at Johns Hopkins and a former adviser to Powell.
The Fed's short-term rate is currently about 3.6%.
The yield on the two-year Treasury moved from 4.22% to 4.30% after Warsh's speech.
Federal Reserve Governor Lisa Cook denounces Trump's mortgage fraud claims
Under US law, Federal Reserve governors can only be removed for cause, not for political reasons.
A federal judge nixed two subpoenas related to the investigation into Powell in March.
Powell's tenure as Federal Reserve Chair ended in May, but he remains a governor on the board.
Fed Gov Lisa Cook's lawyer responds to Trump's renewed threat to oust her
The letter from Lowell included a declaration in Cook's defense from Suffolk University Law School research law professor Kathleen Engel.
Abbe Lowell noted that Trump, Treasury Secretary Scott Bessent, and Attorney General Todd Blanche have reportedly listed multiple properties as primary residences in the past.
Trump first moved to fire Cook in late August 2025.
“Governor Cook's apparent mistake on a form provided to her by her lender, which was aware of her other residences, was unintentional, not criminal, and occurred in her private capacity before she took office.”
Fed Chairman Kevin Warsh's Jackson Hole speech preview
The Fed announced task forces in June to track how the agency sets monetary policy.
CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.
A CNBC survey found that 45% of respondents do not expect Warsh to expand on the rate outlook in his Jackson Hole speech.
Kansas City Fed's Schmid says inflation 'stubborn' and 'sticky'
Schmid said he is not sure whether he would support a rate increase now.
Schmid said it is not clear that the Fed's current policy rate target of 3.5%-3.75% is restrictive.
Schmid said in a CNBC interview that inflation has proven resilient.
Fed preferred inflation gauge shows core prices rose 3.3% in July
Inflation-adjusted incomes rose just 0.2% compared with a year ago in July.
The core PCE price index rose 3.3% year-over-year in July.
The month-over-month headline PCE figure was 0.2% in July.
US mortgage rates hit highest level in three weeks
Total mortgage application volume dropped 1% from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $832,750 increased to 6.78% last week.
Applications for a home mortgage fell 0.3% for the week.
US inflation holds at 3.7 percent in July, above Fed target
Inflation stood at 2.9 percent in late February when the US and Israel attacked Iran.
US inflation has been above the Federal Reserve's 2 percent target for the 65th straight month.
The annual PCE shot to a three-year high of 4.1 percent in May.
Key inflation gauge remains elevated amid Iran conflict and trade fights
Prices rose 3.7% in July compared with a year earlier, the same as June.
The economy grew 1.5% during the second quarter.
The yield on 30-year Treasury bonds briefly reached a 19-year high earlier in August.
Fed governor Lisa Cook responds to Trump's firing threat
A White House aide gave Cook until Wednesday to respond.
Cook denies the mortgage fraud allegations against her.
The charge against Cook has not been proven or considered in court.
Fed minutes show officials open to rate hike if inflation persists
Market pricing shifted to an expectation that the Fed would stay on hold until December before hiking, after previously expecting a September increase.
The minutes said dissenters judged that hiking would likely help forestall the need for a steeper and potentially more costly sequence of tightening moves at a later stage.
Nonfarm payrolls fell by 23,000 in July while the unemployment rate dropped to 4.1%.
“The Chairman asked for input from the Committee on these issues, but no decisions regarding possible changes in the meeting schedule were made, and the Chairman indicated that any change in practice would not affect the schedule over the balance of 2026,”
Trump bemoans Fed interest rate policy, says US should be paying less
The U.S. economy grew at a 1.5% annualized rate in the second quarter.
Trump said he has the right to cut off all business with Switzerland.
The FOMC released minutes from its July meeting on the same day Trump made his comments.
“People put in by Obama, Biden, and me, and there are quite a few members still left, as you understand, and so they vote to raise interest rates. I don't know if they're doing it because they think they're doing a good thing or because they like the politics of it.”
Fed minutes show officials saw need for rate hike if inflation doesn't cool
The FOMC voted 9-3 to keep the federal funds rate targeted in a range between 3.5%-3.75%.
The meeting was held July 28-29.
Nonfarm payrolls fell by 23,000 in July.
“The Chairman asked for input from the Committee on these issues, but no decisions regarding possible changes in the meeting schedule were made, and the Chairman indicated that any change in practice would not affect the schedule over the balance of 2026,”
Fed Chair Warsh faces pressure to combat inflation
Vincent Reinhart is chief economist at Dreyfus-Mellon and a former top Fed economist.
Stephen Douglass is chief economist at NISA Investment Advisors and a former analyst at the New York Fed.
Inflation, according to the Fed's preferred measure, has topped its 2% target for more than five years.
Investors increase bets on Federal Reserve rate rise after oil price surge
Experts predict Federal Reserve interest rate decision for July
The CME Group's FedWatch tool shows a 36% likelihood that the central bank will hike its benchmark rate next week.
The interest rate decision announcement will be followed by a press conference at 2:30 p.m. ET led by Warsh.
The Federal Reserve is expected to leave interest rates unchanged at its July meeting.
Fed Chief Kevin Warsh says inflation is too high, declines July rate hint
Warsh said that prices are too high.
The panel at the ECB Forum also featured ECB President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem.
Warsh declined to give any signal about what the Fed may do at its meeting later in July.