Trump Administration Backs Fed Rate Hike; Treasury Secretary Signals Support for Warsh

According to Treasury Secretary Scott Bessent, who spoke to CNBC on Wednesday (June 24), the Trump administration appears to support potential rate hikes by Federal Reserve Chair Kevin Warsh. Bessent stated that Warsh "will choose the path that best serves the Fed's dual mandate of controlling inflation and maintaining a strong job market," adding that the chair took a "notably strong" stance on inflation recently.

Meanwhile, the Fed's latest rate projections released last week show that nine of 19 policymakers expect rate hikes this year, with six believing there will be more than one increase. Market pricing indicates investors now estimate a rate hike probability exceeding 75% for 2026, according to the Atlanta Federal Reserve's Market Probability Tracker.