'Fed Whisperer': If the Fed hikes again in October, Warsh may face renewed scrutiny from Trump

BlockBeats news, September 18: Nick Timiraos, the "Fed whisperer," wrote that Trump has been attacking the Fed for keeping interest rates too high, but after the Fed raised rates this week, he claimed that he had already endorsed the decision during a phone call with Fed Chair Warsh a few days before the decision.

According to people familiar with the matter, Trump's call with Warsh came as a surprise to many of the president's close advisers. This "truce" clearly shows that Warsh has temporarily reversed the previously tense relationship in which the White House viewed the Fed as an adversary. The risk is that this situation may last only until the Fed raises rates again. A senior administration official said that if the Fed decides to raise rates again in October (on the eve of the midterm elections), Warsh may find himself subject to stricter scrutiny by Trump and his advisers.