Trump just commented on inflation and the Fed—says inflation is "too high" but wants Chair Warsh to stay independent. Also noted he "still has confidence" in Warsh even after today's rate hike.
Interesting dynamic here. Presidents usually avoid commenting on Fed decisions to preserve that independence firewall. But Trump's never been shy about his views on rates.
Market's watching this closely. Any hint of political pressure on the Fed tends to spook bond traders and create volatility in rate-sensitive sectors. The "confidence" language is reassuring, but the inflation comment signals he wants easier policy.
For now, the Fed's path seems intact. But if inflation stays sticky and Trump keeps talking, this could get messy. Rate expectations and dollar strength will be key to watch.
Interesting dynamic here. Presidents usually avoid commenting on Fed decisions to preserve that independence firewall. But Trump's never been shy about his views on rates.
Market's watching this closely. Any hint of political pressure on the Fed tends to spook bond traders and create volatility in rate-sensitive sectors. The "confidence" language is reassuring, but the inflation comment signals he wants easier policy.
For now, the Fed's path seems intact. But if inflation stays sticky and Trump keeps talking, this could get messy. Rate expectations and dollar strength will be key to watch.