Former NEC Director Gary Kohan and former Federal Reserve Governor Kevin Warsh analyzed the Federal Reserve Policy on Kudlo.
federal Reserve On Wednesday, we will announce their latest decisions to cut interest rates and have faced growing political pressure from the Trump administration to inspire the economy.
The Fed is widely expected to leave unchanged interest rates this week, giving these four direct meetings, with the central bank abandoning the rates. The benchmark Federal Funds rate has been at a target range of 4.25% to 4.5% since the final interest rate cut in December.
Central bank policy makers kept interest rates at that level, as 2% due to uncertainty about the impact of tariffs on both sides of their double mandate to pursue maximum employment and stable prices with prolonged targets of inflation. Inflation has fallen from a 40 -year high of the US economy experienced in 2022, but it is above the target of the Fed.
chairman Donald Trump And Vice President JD Vance has criticized Federal Reserve Chairman Jerome Powell for influencing Federal Reserve Chairman Jerom Powell as “Mr. to Late” as “Mr. to Late” as “Mr. to Late”.
Goldman Sachs says that Central Bank is economic results to reduce independence
President Donald Trump left, the Fed Chair has tried to pressurize Jerome Powell to cut interest rates. (Getty Image / Photo Illustration / Getty Image)
Trump said Fed Powell To provide “rocket fuel” for economic growth, interest rates should be cut from a full percentage point.
“It’s too late in the fed ‘is a disaster!” Trump has written in a post on Truth Social. “Europe has a 10 -rate cut, we have no one. Despite that, our country is doing very well. A full point, go for rocket fuel!”
Trump reiterated his call for a full percentage point cut last Wednesday, when inflation figures revealed that the Consumer Price Index (CPI) increased less than expected.
“CPI is out now. The great number! Fed must reduce a full point. Due to coming on debt, it will pay very low interest. So important !!!” Trump has written in a post on Truth Social.
Vance called to cut interest rates for Trump’s Fed Powell: ‘Monetary Mobile’
President Donald Trump has repeatedly slammed the fed to not cut interest rates to suit his requests. (Win McNamee / Getty Image / Getty Image)
Vance echoed the feeling in a post on X last Wednesday when he posted, “The President has been saying this for some time, but it is even more clear: refusal to cut cut rates by Fed is monetary misconduct.”
Powell has said that it is not in a hurry to cut the fed rates repeatedly and is monitoring risks for both sides of its double mandate, such as Revival inflation Or fall in labor market.
Trump administration Tariff policiesSome examples that have partially delayed, but have also increased tariff rates in others, injecting additional uncertainty in the economy with the possibility of high consumer prices in the next months.
“We need to see how it develops,” he said at a press conference after the Fed meeting in May. “There are cases in which it will be appropriate for us to cut rates this year. There are cases in which this will not happen, and we do not know right now. As long as we do not know more about how it is going to deal with and what is economic implications for employment and what is inflation, I can’t say with confidence what the appropriate route will be.”
Trump Eye Cabinet Member to convert ‘Mr. to Late’ Powell to Fed: Report: Report
President Donald Trump nominated Jerome Powell as the Federal Reserve Chair in 2017, although he said that he would not re -nominate him when he is over next year. (Through Saul Loaib / AFP Getty Image / Getty Image)
He has also emphasized that the group of Central Bank is responsible for the setting monetary policyThe Federal Open Market Committee is not going to make its decisions on the lobbying of politicians.
At a press conference after the Fed decision to quit unchanged interest rates in January, the Speaker was asked about Trump’s comments. World Economic Forum Suggesting that he would “demand” that rates will be reduced. Powell replied that he “is not going to give any response or whatever the President said, it is not appropriate for me to do so.”
The markets are expected to leave the unchanged rates on Wednesday, with the CME Fedwatch tool, the target rate is likely to be 98.7% of the target rate from 4.25% to 4.5% since last Thursday. The July meeting of the Fed is seen as a greater capacity to cut the rate, in contrast to the probability of 76.4% of the rates of stabilizing on the current range with 23.4% probability of the cut.
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The Fed meeting in September is seen as the most opportunity to cut the rate, as traders are 58.7% likely to reduce the target rate 25 basis points from 4% to 4.25%, after that meeting, the tool of CME Fedwatch showed.
