Markets are pricing a Fed rate increase this week despite President Trump's
calls for much lower borrowing costs, setting up a potential showdown between
Trump and Fed chair KEVIN WARSH. Economists warn that if the Fed does not raise
rates at Wednesday's meeting its credibility could be damaged; official data
have not shown the 'meaningful improvement' Warsh said he would need to avoid a
hike. A first rate increase in three years, coming weeks before November midterm
elections, risks political backlash—Trump on Sunday said the US should have the
'world's lowest rates' and National Economic Council director Kevin Hassett
warned, 'If it's a rate hike... I'm sure he won't be particularly pleased.'
