Trump spares Fed Chair Warsh from criticism after rate hike

In a recent development, President Trump voiced his dissatisfaction with the Federal Reserve’s decision to raise interest rates but notably refrained from directing criticism at Fed Chairman Kevin Warsh. This restraint may suggest a reduction in political pressure on the Federal Reserve’s leadership. The New York Times reported that Trump’s comments came after the Fed’s latest interest rate hike, highlighting a potential shift in focus away from Warsh himself amid ongoing discussions about future rate adjustments. Market participants have responded to this development with increased anticipation of further rate hikes in the coming months. The prediction markets have shown a notable rise in the likelihood of a 25 basis point rate increase following the Federal Reserve’s October 2026 meeting. This comes amidst a backdrop of varied economic indicators, with some markets reflecting a consistent expectation of interest rate stability or even cuts. The current market pricing indicates a nuanced view among participants, with the probability of a rate increase by 25 basis points in October now standing at 46.5%, a substantial increase from previous days. This shift suggests that the absenc...