The US Federal Reserve held interest rates steady Wednesday, an early test for new chair Kevin Warsh, who faces pressure from President Donald Trump to ease borrowing costs.
Trump has persistently called for the Fed to cut rates, but the Iran war has upended energy markets, with gasoline prices surging and electricity costs in the US expected to reach a record this summer, pushing inflation to a three-year high.
Mayâs better-than-expected jobs report added to calls for rate hikes, with betting markets predicting a rise soon. Though increasing rates is âthe prudent thing to do,â an expert told the Financial Times, Warsh is likely trying to buy time.
