The new chairman of the Federal Reserve is already expected to have a tough time following through on one of Trump’s main demands, according to the Wall Street Journal.
Trump tapped Kevin Warsh to replace Jerome Powell in January, but the economy back then looked a lot different, the Journal noted. What hasn’t changed is Trump’s expectation for lower interest rates, even bringing it up on Friday.
However, recent job reports and inflation are causing economists who pushed for interest rate hikes to move in a more cautious direction and to keep rates steady, per the Journal.
“The U.S. labor market has kicked into a higher gear,” Neil Dutta of Renaissance Macro Research told clients in a Friday note, according to the Journal.
The Journal warned, “The labor-market rebound is setting in motion a collision between the new Fed chair, the bond market and the White House.”
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