Fed and Warsh under pressure to keep rates higher, despite Trump wishes

The Federal Reserve is under more pressure to hold interest rates steady, or even raise rates, given recent indications that the labor market is strong.

The Fed last cut rates in 2025 and, given the recent uptick in inflation, appears unlikely to revise them down again this year. And while inflation has been trending up, the labor market appears quite stable. That means that new Fed Chairman Kevin Warsh and the Fed board can focus more on curbing inflation than on worrying about unemployment rising.