Anthony Scaramucci, founder and managing partner of SkyBridge Capital, attributed the Federal Reserve’s interest rate hike on Wednesday to inflationary pressures from President Donald Trump’s policies.
Rate Hike Amid Elevated Inflation
The Fed unanimously raised its benchmark rate by 0.25 percentage points to 3.75%-4%, the first increase since 2023, and raised its 2026 inflation forecast to 3.7% from 3.6%. The Federal Open Market Committee noted "elevated" inflation in its policy statement.
Moreover, 16 out of 18 policymakers see at least one more hike this year.
Scaramucci took a swipe at the president, stating, “Trump got the hike rate his policies and war demanded.”
Trump’s War Policies to Blame?
The conflict in Iran, which began in February, has disrupted global shipping routes and sent oil prices above $100 per barrel this month.
Gasoline and diesel prices have risen at the pump. The national average for regular gasoline has reached $4.37, up about 30 cents in a month and $1.18 from a year ago. The average price of a gallon of diesel in the U.S. hit a fresh record high of $6.27 on Tuesday.
Meanwhile, Trump slammed the Fed for raising interest rates, renewing his demand for rates at 1% or lower.
Prediction Markets Bet on Inflation
Polygon (CRYPTO: POL)-based Polymarket assigned a 19% chance that the Consumer Price Index rises above 4.5% over 12 months in 2026, while odds of a 5% increase stood at 9%.
Over $1.4 billion has been wagered on this outcome.
The Headline CPI increased 3.4% year over year for the 12 months ending August, in line with expectations. Core CPI, excluding food and energy, rose 2.4% annually, the slowest pace since March 2021.
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