Federal Reserve Chairman Kevin Warsh announced today what was widely expected: that the Fed would raise interest rates by ¼ percent, the first increase in three years. Warsh also made it clear that another increase could be expected later this year.

Trump has been demanding the opposite: that interest rates be reduced in order to lower the cost of the $40 trillion federal debt, and to grease the skids with some cheaper money in the run-up to the mid-term elections.

The City of London and Wall Street, however, have a different idea. They want to force through massive cuts in so-called entitlements in the federal budget (Social Security, Medicare, etc.), along with reducing pretty much any spending that isn’t interest payments or military spending—which together will comprise about 35% of the budget in fiscal 2027.