President Donald Trump pushed to replace former Federal Reserve Chairman Jerome Powell with Kevin Warsh for one primary reason: lower interest rates. But on Wednesday, the Fed chose to keep rates unchanged, between 3.5 and 3.75 percent.

• Warsh said he intends to bring inflation down to the Federal Reserve’s long-standing 2 percent target and to “deliver price stability,” a hint that he may actually raise interest rates later this year.

Inflation for May was reported to be 4.2 percent last week, the highest level in three years. The Federal Reserve estimates inflation will remain above 3 percent throughout the year.

• Much of the current inflation can be attributed to the Iran war’s effect on oil prices. However, even without the increase in energy prices and food prices, inflation would still be high at 2.9 percent.

Markets seemed displeased with the decision.

• On Wednesday, the S&P 500 fell by 1.2 percent, while the nasdaq, which mainly tracks technology companies, fell by 1.3 percent. The two-year treasury yield also increased 16 basis points, indicating investors believe Warsh will indeed raise interest rates.

President Trump also seemed displeased, remarking that the decision was “Alright. Whatever.”

• When asked about the possibility of a future rate increase, he stated it could happen and that “it’s hard to believe. It just keeps a country down.” But he reiterated that he thinks Warsh is a “very good guy.”

This highlights America’s difficult financial situation. On one hand, if interest rates rise, the economy slows and unemployment rises. If rates decrease, inflation worsens and unaffordability grows.

• The U.S. national debt has surpassed $39 trillion, inflation is at a three-year high, and markets are gambling trillions on speculative technologies. The government has no solution.

This financial conundrum is a curse because of America’s disobedience to God’s laws (Leviticus 26; Deuteronomy 28). America’s financial difficulties will persist until the United States suffers a financial meltdown. To learn about the prophecies of America’s financial future, read our Trends article “Why the Trumpet Watches America’s Economic Collapse.”