US EditionPowell Faces Challenges Amid Potential Rate Cuts
Fed Chair Jerome Powell plans gradual interest rate cuts to address slowing growth and inflation pressures while maintaining central bank independence amid political challenges.
- Earlier this month, Federal Reserve Chair Jerome Powell signaled the Fed could cut interest rates soon, framing the move as a response to a weakening economy rather than political pressure from President Donald Trump.
- Slowing economic data shows U.S. economic growth at an annual rate of 1.2%, with labor demand slowing and tariffs pushing goods prices higher, complicating the Federal Reserve's inflation outlook.
- The Fed's policy backdrop shows the Federal Reserve's key short-term interest rate is 4.3%, while Jim Bianco warned the long end of the yield curve isn’t cooperating despite talk of September cuts.
- The administration's personnel moves include President Donald Trump purportedly firing Fed Governor Lisa Cook amid alleged mortgage fraud by Bill Pulte and nominating Stephen Miran to replace Adriana Kugler, who stepped down Aug. 1.
- With Jerome Powell's term ending in about nine months, Federal Reserve officials stress asserting institutional independence and warn politically driven rate cuts could harm credibility and face resistance from rising long-term yields.
14 Articles
14 Articles
Montana Standard
Powell faces challenges amid potential rate cuts
WASHINGTON — After Federal Reserve Chair Jerome Powell signaled the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House's demands.
Powell Wants To Cut Rates—But The Bond Market Isn't On Board
The bond market isn't on board with a September rate cut. Long-term yields could rise due to inflation fears. Trump's attempt to fire Fed Governor Lisa Cook may not impact the decision, but could have long-term consequences.
The Crescent-News
Finance & CommercePowell faces challenges to Fed independence amid potential rate cuts
WASHINGTON (AP) — Now that Federal Reserve Chair Jerome Powell has signaled that the central bank could soon cut its key interest rate, he faces a new challenge: how to do it without seeming to cave to the White House’s…
Powell Sings a Different Tune, Exposes Tough Road Ahead
Fed Chair Jerome Powell used Jackson Hole to align himself with market expectations: rate cuts are coming. Cryptos surged on the signal, with Ether breaking past its 2021 bull run highs, before retreating over the weekend as the symposium exposed just how divided policymakers remain.Powell acknowledged the Fed’s dual challenge: inflation risks still tilted upward, but employment slipping downward. With policy already restrictive, he suggested ad…
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