Trump backs off Fed chair Warsh as US inflation tops 4%
President Donald Trump's economic advisers are giving new Federal Reserve Chairman Kevin Warsh room on interest rates, even as US inflation climbs above 4%. Trump keeps calling for cuts, but his team signalled it will not publicly pressure the central bank for now.
The White House economic team says it is giving newly installed Federal Reserve Chairman Kevin Warsh space to set monetary policy, even after months of public calls from President Trump for lower interest rates.
US consumer inflation has climbed above 4%, well over the Fed's 2% target. Elevated price growth complicates any move to cut rates and leaves Warsh with a narrow path, balancing political pressure against the central bank's mandate.
According to advisers, the administration has chosen for now to soften the visible pressure on the Fed's independence. Investors are watching closely for Warsh's first rate decision and for signs of whether inflation is cooling or proving sticky in the months ahead.
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