Trump can’t stop shooting himself in the foot, as the stage looks set once again for Warsh to hold—if not hike—interest rates

President Trump’s campaign for lower interest rates in the U.S. faces another setback this week at the meeting of the Federal Open Market Committee (FOMC). Wall Street analysts have generally come to the conclusion that the FOMC will hold rates steady, if not hike them—and Trump’s own foreign policy is an underlying factor. The FOMC, led by central bank chairman Kevin Warsh, will meet Tuesday and Wednesday of this week to discuss progress towards its targets of maximum employment and inflation at 2%.It is the latter task that has caused the Fed some difficulty over the past few years. At the time of writing, inflation stands at 3.5%—a drop from May to June, but still elevated compared to the start of the year and the Fed’s target.

Part of that reading has come from higher fuel prices, up 15.7% from a year ago. While pressure in this category is beginning to fade (down 4.9% May to June), prices remain elevated as a result of conflict in the Middle East, choking global oil supply as a result.

There is little sign of a resolution between........

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