Christopher Phelan, chairman of the Council of Economic Advisers (CEA), said the Federal Reserve would be wrong to raise interest rates this week, pointing to declining inflation over the past three months. He cited the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index, arguing that the Fed did not raise rates when inflation was higher months ago. The Federal Open Market Committee (FOMC), the Fed's rate-setting body, is expected to face another close vote after holding rates steady 9-3 at its July meeting. The decision comes as President Donald Trump has pressed for lower borrowing costs. Higher rates generally weigh on Bitcoin and other risk assets by making non-yielding investments less attractive relative to bonds. Fed Chairman Kevin Warsh has said the era of cheap money is ending and that more work remains on inflation, positions Phelan disputed. Markets will focus on Warsh's press conference for indications of the final vote.