Fox’s Bartiromo Agrees as Analyst Says Fed Will Now Have to Hike Interest Rates — Amid Trump’s Months-Long Crusade for a Rate Cut

Fox Business anchor Maria Bartiromo agreed with analyst Ryan Payne’s take that the Federal Reserve may now have to raise interest rates to combat persistent inflation in a striking assessment given President Donald Trump’s public months-long campaign to pressure the central bank to cut rates.

Bartiromo had just rolled back a clip from her interview with investor Jeffrey Gundlach on Sunday Morning Futures in which she floated whether newly-appointed Federal Reserve chair Kevin Warsh might raise interest rates, to which he replied that a “hike” was an “odds on bet.”

Trump had berated and attacked Warsh’s predecessor Jerome Powell for refusing to reduce interest rates while expressing hope that the new chair would do so.

Kicking off Mornings with Maria on Monday, the anchor then asked Payne, a regular contributor and president at Payne Capital Management, for his thoughts on Gundlach’s assessment.

“Yeah, I think he’s 100% right,” Payne began, arguing that rising Treasury yields are signaling renewed inflation fears and increasing pressure on the Federal Reserve to raise interest rates again.

He pointed to the 10-year Treasury yield climbing from 4.3% to 4.6% in just two weeks since his last appearance on her show as evidence that markets are now pricing in “higher inflation for longer.”

“I’d also mention the Fed’s fund rate is at 3.5 – 3.75%, inflation tracking at 4% right now, and Jeffrey made a really good point yesterday, you’re into a point where you’re going to have negative interest rates again,” Payne said.

He added: “You mentioned that TINA trade – ‘There Is No Alternative’ – because there is so much money sitting in money market funds right now getting like 3.3 – 3.4% but if inflation’s at 4[%], that’s a real problem.”

“The bond vigilantes have spoken, and what they’re telling you is the Fed probably has to raise rates here just to keep inflation in check because, clearly, right now we’re pricing in a much different market than we were just two weeks ago,” he added, “which is kind of wild.”

Bartiromo agreed: “Yeah, it’s true and, of course, the president continues to say that this is a temporary situation, Ryan.”

Watch above via Fox Business.

The post Fox’s Bartiromo Agrees as Analyst Says Fed Will Now Have to Hike Interest Rates — Amid Trump’s Months-Long Crusade for a Rate Cut first appeared on Mediaite.