Will the Fed raise interest rates amid Trump criticisms?

President Donald Trump has targeted the Federal Reserve and Jerome Powell over the last week. He slammed the central bank for raising rates five times since he entered the Oval Office, and reportedly his advisers told the president that Powell would be an easy money Fed Chair.

So, with Trump making negative comments about the Eccles Building and its occupants in public and private, will the Fed hold off on future rate hikes?

The market doesn’t think so.

According to the CME Group FedWatch tool, there is a 96 percent chance the central bank pulls the trigger on a rate hike in September. There is also a 67 percent chance that the Fed raises rates in December.

Here is the chart:

Analysts will keep an eye on Powell’s remarks on Friday at the annual Jackson Hole retreat.

For the most part, the Fed seems keen on sticking to its plan for normalizing rates as officials keep noting that several more rate hikes are expected in 2019.

Trump’s recent remarks complaining about rate hikes are further proof that Candidate Trump was much better than President Trump – at least on the Fed.

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