Fed meeting is shaping up to be a nightmare for Warsh. Bitcoin might still shine
Federal Reserve officials prepare for a momentous interest rate decision as a clash looms between monetary policy leaders and the White House. The Federal Open Market Committee is widely expected to raise the overnight funds rate by a quarter point. This move marks the first rate hike by the central bank in three years. While the executive branch pushes for lower borrowing costs, financial markets anticipate a tightening path that pits the new Fed leadership against presidential demands.
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- ✓ Trump and the Federal Reserve are on a collision course over interest rates.
- ✓ Warsh is likely to side with financial markets over Trump as a Fed rate hike is expected.
- ✓ Trump wants lower rates while his new Fed chairman is poised to raise them.
- ✓ Traders have assigned a better than 90 percent probability that the FOMC will vote to raise the overnight funds rate a quarter point.
What changed
Traders priced in a greater than ninety percent probability for a quarter point overnight funds rate hike.
Live updates
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Fed Readies for Momentous Rate Decision as Warsh Faces Test
Federal Reserve officials prepare for a momentous interest rate decision as a clash looms between monetary policy leaders and the White House. The Federal Open Market Committee is widely expected to raise the overnight funds rate by a quarter point. This move marks the first rate hike by the central bank in three years. While the executive branch pushes for lower borrowing costs, financial markets anticipate a tightening path that pits the new Fed leadership against presidential demands.
Why it matters
The central bank and the administration find themselves on a direct collision course over the direction of monetary policy. Incoming Fed leadership appears poised to align with financial market expectations rather than political pressure for monetary easing. Analysts view this upcoming policy choice as a crucial test of institutional independence for the central bank.
What is confirmed
- Trump and the Federal Reserve are on a collision course over interest rates.
- Warsh is likely to side with financial markets over Trump as a Fed rate hike is expected.
- Trump wants lower rates while his new Fed chairman is poised to raise them.
- Traders have assigned a better than 90 percent probability that the FOMC will vote to raise the overnight funds rate a quarter point.
Still unconfirmed
- The upcoming Federal Reserve meeting is shaping up to be a nightmare for Warsh while Bitcoin might still shine.
What to watch next
- The official FOMC vote outcome on the overnight funds rate
- Federal Reserve leadership statements regarding future monetary tightening paths
- Market reactions to the central bank decision
confidence 95%Sources used for this update (6)
- NBC News — Trump and the Federal Reserve are on a collision course over interest rates
- AP News — Warsh likely to side with financial markets over Trump as Fed rate hike expected
- CoinDesk — Fed meeting is shaping up to be a nightmare for Warsh. Bitcoin might still shine
- The New York Times — Fed Readies for Momentous Rate Decision
- CNN — Trump wants lower rates. His new Fed chairman is poised to raise them
- www.cnbc.com — The Federal Reserve is expected to hike rates for the first time in three years: Live updates
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