President Donald Trump said on Sunday that the US should have the world’s lowest interest rates, piling pressure on Federal Reserve Chair Kevin Warsh days before the bank is expected to raise them amid an increasingly hawkish global outlook.
Trump’s call comes on the heels of a hotter-than-expected US inflation reading for August and an unexpectedly strong jobs report, prompting traders to say there is an 86% chance of an increase on Wednesday.
After reiterating the bank’s 2% inflation target last month, “Warsh is now in the position to either vindicate his own views or reignite the debate about what is truly motivating him,” thereby generating uncertainty that “would likely raise the yield on long-term debt,” a CNBC analyst wrote.
