Trump administration presses Fed to keep rates from rising

The Trump administration has mounted an unusually broad public campaign urging the Federal Reserve to avoid raising interest rates at its Sept. 15-16 meeting. President Donald Trump, Vice President JD Vance, Treasury Secretary Scott Bessent and senior economic counselor Peter Navarro have called for rates to stay lower or be cut.

Markets put the chance of a quarter-point hike at about 60% after a strong jobs report. The Federal Open Market Committee left rates unchanged in July, while three members supported a hike. Fed Chair Kevin Warsh has said political pressure has not affected his decisions and pointed to the central bank’s independence.

Investors will focus on the upcoming consumer price report, which Fed officials have identified as a key gauge of whether inflation is easing. Core consumer inflation has been running above the Fed’s 2% target, while wages rose 3.1% from a year earlier in August and unemployment held at 4.1%.

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