Trump Targets Fed Governor as U.S. Inflation Rises
Donald Trump established an inquiry into Federal Reserve Governor Lisa Cook while economists predict inflation will rise to 3.7 percent due to oil and tariffs.
Economists predict U.S. headline inflation will rise to 3.6 percent or 3.7 percent in September, up from 3.4 percent in August. This increase follows a surge in gasoline and diesel prices triggered by U.S. and Israeli attacks on Iran in February, which drove oil prices from $70 to over $106 per barrel. Consumer prices have also been pressured by tariffs implemented by Donald Trump, including national security tariffs on steel and those targeting forced labor.
Amid these economic pressures, Trump established a committee of inquiry to investigate Federal Reserve Governor Lisa Cook for alleged mortgage fraud. Supporters of Cook describe the move as a "kangaroo court" designed to remove her from office after the Supreme Court of the United States blocked a previous attempt to fire her, ruling that she had been denied procedural fairness.
The Federal Reserve System is currently weighing whether to raise policy rates again before the upcoming midterm elections. Market expectations for rate increases have been influenced by hawkish commentary from Federal Reserve official Kevin Warsh.
