Fed officials signal possible rate hikes as Trump presses for cuts
Federal Reserve officials are signalling that the next move on U.S. interest rates could be a hike rather than a cut, putting the central bank on a potential collision course with the White House. Reuters reported that a Federal Reserve official, Jefferson, said the central bank may need to raise rates if inflation does not ease soon ([Reuters](https://news.google.com/rss/articles/CBMitgFBVV95cUxNVlVCN2o4V0dUNDZlUTZfb1pNVjhwWEZ0TUtCSGlsVDAyQ3pvNkhjWm1KbkRBN1F0WmVXY19TcV9fWHFwTl9xRDRJUjl2VDRUd2l3LTBjek00T2YwU0xralkzaUVrV3ZXTk1vR2FxZzJjd1BoMlFZa1VOMGFlSU8zSWhCRzBJUjNrVnh1dmF1emR2dVFpbEp4TlpXZWpvOGF1UE4xNXFldFI5bUxRWVFxUkVDWTZnZw?oc=5)). The Washington Post, in a report published at 20:19 GMT on 17 July, said President Donald Trump is pushing for rate cuts even as a growing number of Fed officials say increases could be the next step ([The Washington Post](https://news.google.com/rss/articles/CBMitwFBVV95cUxQZjBUb0NlcTBlcldob3dzdVZmY3d6VzRwZlRPOWJRbU00bUlFM0txZzdNMkZrNlJBblFKZVgxQUdsZ1JwMDdjNnZHOGtMeVRIbXkzcWN6SG5MVmFmTHlaTXdGa0NLbkpGS0dvd0pNeGJKVVVEcFhQcEZoRFdvd192WHhDRnc3V1hlZW5MZWN1TG8wTnBBX3Q0Q2ItTloxX2FjbENLS2Jma1pwU0lEaU9Ma0g3T0ZvOU0?oc=5)).
Photo: Federalreserve via Wikimedia Commons (Public domain)
Federal Reserve officials are signalling that the next move on U.S. interest rates could be a hike rather than a cut, putting the central bank on a potential collision course with the White House. Reuters reported that a Federal Reserve official, Jefferson, said the central bank may need to raise rates if inflation does not ease soon ([Reuters](https://news.google.com/rss/articles/CBMitgFBVV95cUxNVlVCN2o4V0dUNDZlUTZfb1pNVjhwWEZ0TUtCSGlsVDAyQ3pvNkhjWm1KbkRBN1F0WmVXY19TcV9fWHFwTl9xRDRJUjl2VDRUd2l3LTBjek00T2YwU0xralkzaUVrV3ZXTk1vR2FxZzJjd1BoMlFZa1VOMGFlSU8zSWhCRzBJUjNrVnh1dmF1emR2dVFpbEp4TlpXZWpvOGF1UE4xNXFldFI5bUxRWVFxUkVDWTZnZw?oc=5)). The Washington Post, in a report published at 20:19 GMT on 17 July, said President Donald Trump is pushing for rate cuts even as a growing number of Fed officials say increases could be the next step ([The Washington Post](https://news.google.com/rss/articles/CBMitwFBVV95cUxQZjBUb0NlcTBlcldob3dzdVZmY3d6VzRwZlRPOWJRbU00bUlFM0txZzdNMkZrNlJBblFKZVgxQUdsZ1JwMDdjNnZHOGtMeVRIbXkzcWN6SG5MVmFmTHlaTXdGa0NLbkpGS0dvd0pNeGJKVVVEcFhQcEZoRFdvd192WHhDRnc3V1hlZW5MZWN1TG8wTnBBX3Q0Q2ItTloxX2FjbENLS2Jma1pwU0lEaU9Ma0g3T0ZvOU0?oc=5)).
The divide underscores the tension between the White House's desire for cheaper borrowing and the Fed's mandate to keep prices stable. Trump has repeatedly urged the central bank to lower rates; the latest remarks from officials suggest several policymakers remain more worried about sticky inflation than about growth.
The inflation-focused camp appears to be broadening. Crain's Cleveland Business reported that Hammack, president of the Federal Reserve Bank of Cleveland, sees no conflict in the Fed's goals and counts inflation as her principal concern ([Crain's Cleveland Business](https://news.google.com/rss/articles/CBMikAFBVV95cUxQNlFxZlVmZkFvVk1tWk1OcG5nd2NObjdLMnZrcEtKSGZic0dZaGllZVN4dndqWTFsM0FwYmlBOGs0NXZTbWRGTXFsRlZqeERuN0U4NGJ4Y0lZRjN3TnhWVTR6d3N0YUhmTjY1MlZRcGJvMDd3ajRjYjM1UFN2NFhNOEFEVjBVQjhrVXFtclRqc3I?oc=5)).
Any shift in the expected path of U.S. rates carries global consequences, because U.S. rates help set the cost of capital worldwide and bear directly on the dollar, emerging-market currencies and commodities. Market strategists are already pointing to the uncertainty in related assets: Goldman Sachs argued that central-bank demand is providing a floor for gold prices ([Investing.com](https://news.google.com/rss/articles/CBMivwFBVV95cUxQRUpaUVF1ZjVfMk4yRHh5RWh6Ulh2OGJyUWNkTGg0dEFEWGEtdUhOUG82bTVFbGRvUlNvMGU5Q1pmby05d2otTnpCQ1JLemUtMnVxZ253aE1JSVhyVC1BRXJlalFJbGdldVJNYjZUOTRvRDNkMm95aWxoQzZ5ZlBjQnlmUmZSQjMzZFNwR1g2blBrdUp6NlNZUVllamlSc2JBTENQMVZaZGxJVW5TU19XTHhhMDR0VFVVUG4tU3pjQQ?oc=5)), while Bernstein lifted its 2026 gold target to $4,533, citing central-bank buying and "muted" Fed hikes ([investingLive](https://news.google.com/rss/articles/CBMiywFBVV95cUxNeTVLd0R3M0ZFR3ZRZnVINW5OcmJ4NHRaZGZYN3ZBMVlkZmJXc3BCakRwcm1yNEhZWmo4OG03VTRRYVZ5VGx5UF9oTlMxRERRSjFjQTF0WFZKRzdMenA4Yi1aTG5BTkJ2T1FtZnBSMWExRE5iVTlQRTZYUFZodnZQdUtZN1lyNC1uRFhvazZIZjctV1RHWnczQkVfc3ZhQVhoLXlFYVpJa1F1a1NiM0JheDRFV1VwZHQySzY4Wk00VVlPQWc0OWNxcFBGUQ?oc=5)).
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