President Donald Trump’s hopes of reducing inflation before the upcoming midterm elections may hinge on a move that could provoke his ire: a likely increase in interest rates by the Federal Reserve.

During a recent appearance on CNN, economist Justin Wolfers emphasized that the Federal Reserve, led by Chairman Kevin Warsh, seems poised to respond to persistent economic pressure with higher rates.

Markets have already begun to reflect this expectation, with analysts predicting that the Fed may soon implement rate hikes as a necessary measure to combat inflation.

“If they don’t raise rates at the upcoming meeting, they might do so at the subsequent one, which is still before the midterms,” Wolfers pointed out, underlining the urgency behind the Fed’s potential actions.

Inflation was on the rise again in August, climbing 3.4 percent compared to the same month last year, creating a pressing situation for the White House.

Trump has consistently called for lower interest rates, a demand that sparked tensions during his previous clashes with former Fed Chair Jerome Powell. His relationship with Warsh has been more positive, yet the current economic climate poses challenges.

Despite Trump’s suggestions, Wolfers believes a rate hike is essential for curbing inflation, stating, “Markets are convinced that Warsh and his colleagues have no choice but to raise rates to tackle inflation.”

The looming decision from the Fed comes at a time when a 87% chance of a rate increase next week has been factored into market predictions, according to Wolfers.

Wolfers added a humorous note about the political fallout, saying, “There’ll be someone in the White House who will be very, very angry” if the Fed opts to raise interest rates.

Inflation’s leading driver currently appears to be the soaring cost of oil. Wolfers expressed concern that significant relief at the gas pump won’t arrive until there’s progress on foreign policy issues, particularly concerning Iran.

Experts agree that the interplay between national economic policy and global events is critical. The price of oil, a major contributor to consumer costs, remains unstable amid ongoing geopolitical tensions.

As the Fed prepares for its decision, all eyes are on the implications of its actions—not just for the economy but also for the political landscape as the midterms draw closer.

The stakes are high; inflation has become a focal point for voters, influencing their perceptions of the administration’s economic stewardship.

In the 2020 election cycle, economic performance was a critical factor in voter behavior. With inflation now hitting consumer wallets, the pressure is mounting for the administration to act decisively.

As Trump continues to voice public frustration over rising rates, the Fed’s upcoming decisions could reshape both the economy and his political fortunes.

Looking ahead, analysts will be keenly monitoring the Federal Reserve’s strategy and its potential impact on the economy as midterms approach.

With the financial markets poised for change, the connection between monetary policy and political implications remains a powerful narrative heading into this crucial electoral period.

The next meeting of the Federal Reserve could yield critical information that sets the course for the economy in the lead-up to the midterms—and possibly beyond.