BRIC Team reports: Trump tried to fire Fed Governor Lisa Cook, a Biden appointee, amid allegations of mortgage fraud, and called for a Department of Justice (DOJ) investigation into Powell’s management of a building renovation project that a federal judge ruled was a pretext for pressuring Powell to cut rates or resign. Advertisement The DOJ dropped the investigation after Senator Thom Tillis of North Carolina, a ranking member of the Senate Banking Committee, said he would not vote to advance Trump’s nominee to lead the central bank until the investigation ended.Policy shiftsWarsh has pushed for “regime change” within the central bank.
He wants a smaller balance sheet, which he argues should allow for a lower policy rate.The Fed’s next meeting, the first that Warsh will chair, is scheduled for June 16-17.CME FedWatch, which tracks the likelihood of certain monetary policy outcomes, says there is a 97 percent chance that rates will remain unchanged at the next policy meeting. It is expected that the central bank will maintain interest rates at 3.50 percent to 3.75 percent for the remainder of 2026.This comes amid surging oil prices and a consumer price index report released on Tuesday showing that consumer prices rose by 0.6 percent in April, after a 0.9 percent increase in March on a monthly basis.
Background
There was a more stark increase on an annual basis, and prices rose by 3.8 percent from this time last year.
