Trump piles pressure on Warsh with rate cut demands

The former president is publicly demanding the new Fed Chair cut rates despite inflation running at 3.8 percent, nearly double the central bank's target. Trump argues action needs to be taken "sooner rather than later" to help struggling consumers, echoing his previous pressure campaigns against Jerome Powell. Warsh finds himself in an impossible position: cut too fast and risk reigniting inflation, wait too long and face accusations of holding back growth. The Fed Chair has stressed that Trump "never asked me to predetermine, commit, fix, decide on any interest rate decision" in their discussions, but the public pressure campaign creates an early test of central bank independence. Rising oil prices from Iran tensions make rate cuts even riskier, setting up what analysts call an early "throwdown" between the White House and the Fed.