White House backs Fed Chair Warsh ahead of rate decision

National Economic Council Director Kevin Hassett stated that Trump and his team respect Warsh’s call on interest rates at Wednesday’s Federal Open Market Committee meeting.Officials expect a possible quarter-point increase the first over in three years due to inflation stabilizing at 3.4% and strong jobs data despite the administration's preference for lower rates to boost growth.

These recent comments underline a commitment to Fed independence under the Trump-appointed Warsh as traders eye the outcome and his press conference for future signals.Some of the echoes of fears likely reflected concerns among investors that the Fed was not committed to fighting inflation; with investors commonly demanding higher yields when the inflation increases.The Fed’s potential rate hike comes before the midterm elections in which high prices and affordability have….

Warsh has withheld such direction so far but Wall Street traders expect three hikes in September, December and March in line with futures prices.

White House backs Fed Chair Warsh ahead of rate decision: What to know September 15, 2026.