White House ups pressure on Kevin Warsh's Fed as Wall Street expects hike

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1. 7d ago

   White House Pressures Fed as Wall Street Anticipates Rate Hikes

   The White House is increasing pressure on the Federal Reserve under Kevin Warsh while Wall Street expects interest rate increases. UBS forecasts two rate hikes before the end of 2026, citing a strong jobs report as a primary driver. However, some analysts argue that inflation data must remain high to persuade the Fed to act this month. This tension exists as political pressures from the White House and the upcoming midterm elections potentially conflict with economic indicators favoring tighter monetary policy.

   Why it matters

   The Federal Reserve manages US monetary policy to balance inflation and employment. Kevin Warsh leads the institution during a period of volatile capital flows and shifting foreign interest in US Treasurys.

   What is confirmed

   • UBS forecasts two US Fed rate hikes in 2026.

   Still unconfirmed

   • Treasurys are experiencing a capital flow reversal and losing foreign appeal.

   What to watch next

   • Release of new US inflation data
   • Official Federal Reserve interest rate decision for the current month
   Sources used for this update (8)

   1. Barron's — A Fed Rate Hike Depends on Hot Inflation. Don’t Count on Either.Economy Column
   2. Financial Times — Will US inflation data persuade the Fed to raise rates this month?
   3. Reuters — UBS forecasts two US Fed rate hikes in 2026 after strong jobs report
   4. Fortune — White House ups pressure on Kevin Warsh's Fed as Wall Street expects hike
   5. Investing.com — UBS expects the Fed to lift rates twice before the end of the year. Here’s why.
   6. CNBC — A Fed rate hike is coming into view. Here’s what UBS says to own — and avoid
   7. CNBC — Treasurys are losing foreign appeal in a historic capital flow reversal — and here's one trade investors favor instead
   8. finance.yahoo.com — US Midterm Elections and Trump Pressure Are Stopping Rate Hikes, Says Wharton Professor
   confidence 70%