What will the Federal Reserve do interest rates and how will Trump’s reaction be?

The Federal Reserve is scheduled to announce its next movement at the interest rate on Wednesday, which may lead to a reaction from the president Donald TrumpWho recently called for the Federal Reserve to reduce interest rates.

It is expected that members of the Federal Open Market Committee (FOMC) will leave the target for the standard federal funds rate unchanged in the range of 4.25 % to 4.5 %-which will be the first stop for the central bank in this course. Discounts decreased rates from 5.25 % to 5.5 %.

Inflation in the economy continued despite the diligence of 40 years of altitude by 9.1 % of the inflation recorded in June 2022. The recent reading of the Consumer Prices Index (CPI) came by 2.9 %, higher than the Federal Reserve rate of 2 %. This is significantly due to stubborn inflation, the possibility of the Federal Reserve stop at the January 99.5 % meeting, according to the CME Fedwatch tool.

The expected pause of the Federal Reserve may lead Trump to renew his cash to the Central Bank Federal Reserve Chairman Jerome PowellAfter inviting the president to drop interest rates last week.

Trump says he will not shoot Jerome Powell feeding chair

In a letter to World Economic Forum Last week, President Trump said he was planning to reduce the price of oil, in turn, energy prices to treat inflation – which he said should be a driving force to reduce interest rates.

“As oil prices drop, I will ask for low interest rates immediately. Likewise, it must decrease all over the world. Upper Egypt must follow,” Trump said.

Trump, who nominated Powell for his role as Federal Reserve Chair In 2017, the president has repeatedly criticized over the years. During his first term at the White House, Trump threatened to launch Powell and described him as “bone head”.

While Trump was a campaign to return to the White House last year, he criticized interest discounts in the Federal Reserve as “political” – although he said in June he would not try to launch Powell and repeat that month.

Possibilities of recession in us: economists canine

The potential impact of Trump’s economic policies, including his plans for tax discounts and federal spending as well as customs tariffs on imports, will be prominent when Powell speaks to the press on Wednesday after announcing the federal reserve decision.

Bank of America Global Research wrote in a memorandum of investors suffering from the Federal Reserve meeting, which they expect to include the post -POWLL press conference a great focus on the next step for the Federal Reserve Mourning, as well .

“Powell is probably asked about the Fed’s Reserve’s response to the Trump policy agend America. “But it may also notice that some members of FOMC (such as Waller and Williams) have already combined politics in their outlook.”

Federal reserve minutes offer policy makers who see immigration and customs tariff transformations, which creates uncertainty in inflation

Earlier this month, FOMC issued its meeting minutes in December, when politicians were killed highly uncertainty about the economic impact of potential changes in trade Immigration policy.

This is uncertain, along with continuous inflation in normal economic data, suggested that it is a process Inflation Return to its 2 % target “may take longer than expected.”

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With no inflation, federal reserve monitors expect politics to take a slower approach to discounts in evaluation rates in 2025. The possibility of the Federal Reserve was stable for its next meeting in March 68 % as of Tuesday noon, according to the CME Fedwatch tool.