The Federal Reserve is expected to maintain fixed rates despite Trump’s profiles of deep discounts

the Federal Reserve It will announce its latest decision on lower interest rates on Wednesday and faced political pressure from the Trump administration to the low interest rates to motivate the economy.

The Federal Reserve is widely expected to leave interest rates unchanged this week, making it four consecutive meetings in which the central bank has left prices unchanged. The standard federal funds have been targeted from 4.25 % to 4.5 % since the last interest rate of the Federal Reserve in December was reduced.

Policy makers maintained the central bank on interest rates at this level due to uncertainty about the impact of definitions on both sides of its double mandate to follow up the maximum amount of employment and stable prices with a long -term goal is 2 % of inflation. Inflation has decreased from its highest levels in 40 years, as it witnessed the American economy in 2022, but is still above the goal of the Federal Reserve.

president Donald Trump Vice President JD Vance has increased their criticism of the Federal Reserve’s reluctance to reduce interest rates, which mocked the Federal Reserve Chairman Jerome Powell as “the master is too late” in pushing him to influence decisions in the central bank’s monetary policy.

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After issuing a more powerful report than May Jobs earlier this month, Trump said Fed’s Powell Use interest rates must be reduced by a full percentage to provide “missile fuel” for economic growth.

“It is too late” at the Federal Reserve Disaster! “Trump wrote in a post on social truth.” Europe had 10 price cuts, we had nothing. Although, our country works great. Go to a complete degree, missile fuel! “

Trump repeated his call to reduce a full percentage point last Wednesday after inflation data showed that the Consumer Prices Index (CPI) had risen less than expected.

“CPI only outside. Large numbers! The federal reserve must reduce one point. It will pay a much lower benefit on the next debt. It is very important !!!” Trump wrote in a post on the social truth.

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Vans chanted these feelings in a post in X last Wednesday when he published, “The president was saying this for a while, but it is more clear: The Federal Reserve to reduce prices is the cash misconduct.”

Powell said repeatedly that the federal reserve is not in a hurry to reduce prices and monitor the risks on both sides of his double mandate, like The apparent inflation Or deterioration in the labor market.

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“We will need to know how this is developing,” he said at a press conference after the Federal Reserve meeting in May. “There are cases in which they are suitable for us to reduce prices this year. There are cases that will not be, and we do not know. Until we know more about how this is stable and what are the economic effects of employment and inflation, I could not say confidently that I know what is the right path.”

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He also emphasized that the central bank group is responsible for the preparation MonetaryThe Federal Open Market Committee will not adopt its decisions regarding pressure on politicians.

At a press conference after the Federal Reserve’s decision to leave interest rates unchanged in January, the President was asked about the comments made by Trump in World Economic Forum This indicates that he will “demand” to reduce prices. Powell replied, “He will not have any response or comment at all on what the president said. It is not appropriate for me to do so.”

The markets expect an overwhelming majority that the Federal Reserve leaves prices unchanged on Wednesday, as the CME Fedwatch tool showed 98.7 % for the target rate of 4.25 % to 4.5 % as of last Thursday. The Federal Reserve meeting in July is seen as more capabilities to reduce average, with a possible 23.4 % reduction instead of a 76.4 % chance of prices fixed in the current range.

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The Federal Reserve meeting in September is seen as the most likely occasion to reduce prices, as traders see a 58.7 % chance, the target rate will be reduced 25 basis points to a range ranging from 4 % to 4.25 % after that meeting, as the CME Fedwatch tool showed.