Trump Backs Warsh After Fed Defies His Call for Rate Cuts

Watch on YouTube ↗  |  September 17, 2026 at 10:39  |  48:30  |  Bloomberg Markets
Speakers
Azeem Azhar — Founder, Exponential View
Fabianna Del Canto — Co-Head of EMEA Capital Markets, MUFG
Steven Ahrens — European Senior Finance Editor, Bloomberg
Ven Ram — Markets Live Reporter/Strategist, Bloomberg
Jari Stehn — Goldman Sachs, Chief European Economist
Donald Trump — President of the United States

Summary

The video covers the Fed's first rate hike in three years under Chair Kevin Warsh, which defied President Trump's calls for lower rates, and the market reaction that saw bond yields retreat. It also covers Trump's threat of tariffs on Europe over Canada's potential associate EU membership, AI regulation concerns around King Charles's meeting with tech leaders, and AI investment trends. Guests discuss European macro outlook, AI-driven capital markets issuance, bank trading divergence, and BOJ/BOE policy setups.

  • Fed unanimously hikes rates, signals another hike this year; Warsh says inflation is too high.
  • Trump backs Warsh but criticizes a hostile Fed board and says rates are too high.
  • Trump threatens tariffs or trade cutoff with Europe if the EU admits Canada as an associate member.
  • King Charles convenes AI leaders including Nvidia's Jensen Huang and OpenAI's Sarah Friar on AI safety.
  • Azeem Azhar says the AI economy ex-China is growing rapidly, with strong mainstream business adoption.
  • MUFG's Fabianna Del Canto sees positive fixed income technicals and a robust leveraged finance pipeline.
  • UBS may benefit from equities trading strength while Deutsche Bank lags on fixed income focus.
  • BOJ and BOE policy decisions are in focus, with the yen sensitive to BOJ urgency and long-dated gilts watching BOE bond sales.
Ideas
Jari Stehn Goldman Sachs, Chief European Economist 13:46
Europe short-term outlook better than expected.
Short-term European economic prospects are better than expected, supported by a decent first half, fiscal expansion, and Europe beginning to benefit from the global AI cycle; however, longer-term headwinds from China competition, tariffs, demographics, and energy dependence remain.
VGK MED
Fabianna Del Canto Co-Head of EMEA Capital Markets, MUFG 20:40
Fixed income technicals positive; allocations rising.
Fixed income technicals are positive because asset allocators are moving into the asset class, markets are digesting AI-related supply, and yields remain high; this supports fixed income even if navigating the supply is tricky.
TLT MED
Azeem Azhar Founder, Exponential View 28:48
AI economy growth accelerating; businesses keep investing.
The AI economy ex-China is running at about $200 billion annualized, has more than tripled year-over-year and is accelerating, driven by mainstream U.S. businesses adopting the technology; businesses are unlikely to stop their AI investment, so the revenue trajectory remains strong.
AI-SECTOR HIGH
Azeem Azhar Founder, Exponential View 33:56
UK data center power must quadruple.
U.K. data center power capacity is only a couple of gigawatts and needs to quadruple by 2030, with businesses leaning forward into the buildout, implying a strong long-term demand tailwind for U.K. data center infrastructure.
UK data centers MED
Steven Ahrens European Senior Finance Editor, Bloomberg 43:15
UBS benefits; Deutsche Bank lags.
European banks may mirror the U.S. divergence where equities trading is booming while fixed income trading is softer; UBS has a strong equities trading business and should benefit, while Deutsche Bank's greater focus on fixed income trading could make it a relative laggard.
UBS MED
Steven Ahrens European Senior Finance Editor, Bloomberg 43:15
UBS benefits; Deutsche Bank lags.
European banks may mirror the U.S. divergence where equities trading is booming while fixed income trading is softer; UBS has a strong equities trading business and should benefit, while Deutsche Bank's greater focus on fixed income trading could make it a relative laggard.
DB MED
Ven Ram Markets Live Reporter/Strategist, Bloomberg 44:45
BoE may support long-dated gilts.
The Bank of England may stop selling long-dated gilts to stem rising yields; if that announcement comes, it could support long-dated gilts.
Long-dated gilts MED
Ven Ram Markets Live Reporter/Strategist, Bloomberg 45:54
Yen weakens if BOJ disappoints.
The BOJ rate hike is already priced in; if the BOJ does not signal urgency or back-to-back hikes and instead sticks to cautious boilerplate, it will be a major letdown, especially after the Fed hike, and send the yen lower.
FXY MED
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This Bloomberg Markets video, published September 17, 2026, features Jari Stehn, Fabianna Del Canto, Azeem Azhar, Steven Ahrens, Ven Ram discussing VGK, TLT, AI-SECTOR, UK data centers, UBS, DB, Long-dated gilts, FXY. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jari Stehn, Fabianna Del Canto, Azeem Azhar, Steven Ahrens, Ven Ram  · Tickers: VGK, TLT, AI-SECTOR, UK data centers, UBS, DB, Long-dated gilts, FXY