Are rate cuts off the table after Warsh’s latest inflation comments?
Last week, Trump blasted the Fed’s board as “maybe a little bit hostile” and wanting “to do the wrong thing,” suggesting that he still disagreed with its unwillingness to cut rates.
But in an interview with CNBC, he declined to criticize Warsh directly. “He’s a great guy and a great pro, and I know where he’d like to be,” Trump said, “but he has to do what he has to do.”
Cohn said Warsh had given strong indications in his opening press conference as Fed chair that he wouldn’t be swayed by outside influence over his decisions.
“He’s pretty clear in his messaging… that they’ve got to deal with inflation,” she said. “So for Trump to be able to pressure him to cut rates, or for him to be afraid of a rate hike – that’s not what he’s signaled. I think he’s signaled that he’s ready to deal with the job at hand.”
The Fed has four further decisions scheduled between now and the end of the year: one on July 28-29, followed by announcements in September, October, and December.
