Fed vs. inflation

The bill for Trump's attempt to fire Cook: 12 million

Lisa Cook has incurred legal and security costs equivalent to 12.3 million kronor connected to Trump's attempt to oust the Fed member. This is evident from documents from the central bank, writes CNBC.

- A case in the Supreme Court is not cheap, says a source with insight into Cook's case.

The documents also show that external parties have paid the costs. The US Supreme Court is expected to rule on the case shortly.

Analysis: Warsh's statement a cold shower for Trump too

The new Federal Reserve chairman Kevin Warsh signaled a more hawkish line with higher interest rates than the market had expected at Wednesday's interest rate announcement, writes Bloomberg's John Authers.

The unusually brief interest rate statement signals that Warsh does not intend to continue the tradition of providing detailed guidance on upcoming interest rate decisions. “The brevity itself appears to be a surprisingly strong hawkish message,” Authers writes.

On the other hand, the Fed seems to be sticking to its 2 percent inflation target, despite speculation that Warsh would take a softer line in line with Donald Trump’s desire for lower interest rates, he adds.

DI’s Emanuel Sidea even believes that Warsh’s statement is the exact opposite of what Trump wanted when he appointed the new central bank governor. The president wanted to see sharp interest rate cuts – instead, the message was that the next step could be an increase, Sidea writes.

Warsh’s tone shocked the stock markets: “The wind has turned”

The Fed’s so-called dot plot was significantly more hawkish than the market had expected. Analysts tell several media outlets that.

New Century Advisors chief economist Claudia Sahm states that “the wind has turned” in inflation expectations, as Warsh places a strong focus on price stability.

– This means that we will not get the easier monetary policy that many thought Chairman Warsh would pursue earlier this year, she tells CNBC.

Etoro’s Bret Kenwell is on the same track.

– The most important signal came from the interest rate forecasts, he tells Bloomberg.

US stock markets fell sharply at the same time as market interest rates rose, the dollar strengthened and the price of gold fell back sharply.

SEB’s US economist Elisabet Kopelman believes that Warsh made an immediate impact as the new Fed chief when he refrained from providing his own interest rate forecasts.

– Previously, several members have pressed for the Fed not to continue signaling possible interest rate cuts. Now, they are basically giving no signals at all, she tells DI.