The Federal Reserve is scheduled to announce the interest rate decision amid Trump’s pressure

The Federal Reserve is scheduled to announce its latest decision on interest rates this week in the middle of the president Donald Trump Efforts to pressure the central bank to reduce prices.

The FOOC Open Market Committee (FOMC), which is the Central Bank’s monetary policy committee, will start a two -day meeting on Tuesday and the interest rate decision will be announced on Wednesday, when the Federal Reserve Chairman will be Jerome Powell A press conference will also be held.

Trump has repeatedly criticized Powell for not lowering prices, which he says is costing the federal government billions of dollars in the expenses of interest in the service of national debt. Powell pointed to concerns about the definitions that pushed inflation away from the target rate of 2 % of the Federal Reserve as a reason for the price cuts.

Last week, Trump became the fourth president who visited the federal reserve, as he and the allies went to take a tour at the central bank headquarters with a continuous renewal of criticism of the budget. During the visit, the president took the personal opportunity to repeat his call for interest rate discounts.

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“I think Jerome Powell, I think we had a very good meeting, and we forget the building that went out of control and all of this, but I think we have a very good meeting on interest rates,” Trump said. Conversation with Powell. “Our congratulations said, that the country is very well affected, and I got it to mean that I think it would start recommending low rates.”

Powell confirmed that Federal Reserve He is not in a hurry to reduce interest rates due to the uncertainty surrounding the impact of definitions on inflation and consumer prices.

He said that in his current position, the Federal Reserve is in a good position to respond to risks on both sides of the double delegation of the central bank, which is to enhance stable prices in line with 2 % in the long run The purpose of inflation, Along with enhancing the maximum employment. The inflation remained constantly higher than the Federal Reserve’s goal by 2 %, despite the progress of slowing its pace with the 40 -year -old heights in 2022 during the Biden administration.

Although Powell is the head of the Federal Reserve, he and the other rulers who make up 12 people are responsible for making collective decisions regarding the moves in the Federal Federal Money Money Money The Central Bank. This range was at 4.25 % to 4.5 % since the last FOMC reduction in December 2024.

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One of the members of the committee, the ruler of the Federal Reserve Bank Christopher WalBefore the meeting, he indicated that it believes that the Federal Reserve should reduce interest rates, and refuse concerns about the definitions that feed inflation and argue that it will cause prices to rise once for once. Policy makers must search in the past.

Federal Reserve Governor Michelle Bowman also said she believed that there may be a reduction in the interest rate at this meeting to weaken more laboratory.

The market expects the Federal Reserve will retain fixed rates again for the fifth consecutive meeting, as the CME Fedwatch tool showed a 96.9 % chance of the remaining prices on its current level, which increased from 81.4 % per month.

If this FOMC meeting continues as the market expects, Waller, Bowman and other similar policy makers in thinking against the majority can explain the authors who explain how they believe that the Federal Reserve Bank should have been going. Bowman was the latest government of the author of the author General opposition When she said that the federal reserve should have reduced 25 basis points instead of last September 50.

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Despite the different views of the Federal Conservatives, the market believes that the majority of FOMC will come to reduce prices before the end of 2025.

The CME Fedwatch is currently showing a 63.7 % opportunity to reduce 25 basis points at the next FOMC meeting in mid -September. After the Federal Reserve meeting in late October, the tool shows a 50.5 % chance that interest rates are 25 basis points and an opportunity of 29.7 % that it will be less than 50 basis points.

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Moreover, it indicates a 19 % chance that the target rate is 75 basis points than its current level after the Federal Reserve meeting in early December, compared to an opportunity of 42.8 % of the 50 -point reduction, the opportunity of 30.7 % of the 25 -year -old reduction and an opportunity of 7 % of the money rate at its current level during the end of the year.