Federal Reserve likely to stand pat on rates this week, deepening the gulf between Powell and Trump
UNITED STATES, JUL 29 – Trump administration begins planning for multiple Federal Reserve chair candidates amid Powell's uncertain departure and ongoing disputes over interest rate policies, with inflation at 2.7% in June.
- On Wednesday, the Federal Reserve is expected to leave its short-term rate unchanged for the fifth straight meeting, underlining deep divisions with President Donald Trump.
- Last week, Trump and White House officials ramped up their attacks on Powell over rates, while on Monday, he was more restrained during a joint appearance with British Prime Minister Keir Starmer.
- Fed officials penciled in only two reductions this year and two Fed governors are expected to dissent for the first time since 1993 amid low unemployment at 4.1%.
- Trump’s debate over firing Powell drew scrutiny, as critics questioned whether costs for Fed building renovations aimed to justify ousting him, then he backed off.
- Futures pricing indicates two rate cuts this year, with Wall Street futures projecting two in 2026.
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104 Articles
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The world's most important central bank has been immune to Donald Trump's attacks, but internal unity is crumbling.
Federal Reserve likely to stand pat on rates, deepening gulf between Powell and Trump
President Donald Trump, left, speaks with Federal Reserve Chairman Jerome Powell during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
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