'In our lane': Fed's Warsh defies Trump but still fighting for credibility
WASHINGTON — U.S. Federal Reserve chair Kevin Warsh delivered the interest rate hike this week that many economists think surging inflation required, defying President Donald Trump — but questions about the central bank chief's credibility linger. The Fed on Wednesday raised rates in the world's largest economy by 25 basis points to between 3.75 and 4.00 percent, with policymakers signalling at least one more rate hike before year-end. Trump has launched an unprecedented assault on the Fed's independence to set monetary policy since taking office, initiating a criminal probe into Warsh's predecessor and attempting to fire another Fed governor in his quest for lower rates to spur economic activity. He frequently insulted and berated former chair Jerome Powell, but delivered a muted — if still extraordinary — response to Warsh's announcement of the rate hike. Trump told reporters he spoke with Warsh before the Fed's meeting, telling him to "do what you want" and ascribing the decision to raise rates — which the Fed chair voted for and stood by — to a "hostile board." Asked by a
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