The US Federal Reserve yesterday left interest rates on hold in its first meeting under new boss Kevin Warsh, who was installed by Donald Trump.
Officials at the US central bank flagged up concerns about inflation and the likelihood of a hike in rates later this year.
That would infuriate Trump, who railed against Warsh’s predecessor Jay Powell for not cutting rates.
Warsh has been left treading a tightrope as rising US inflation and strong jobs growth add to the argument for rises.
The outlook for inflation was marked up from 2.7 per cent for the end of 2026 to 3.6 per cent.
