The Fed Faces Economic Uncertainty and Political Pressure as It Decides Whether to Cut Rates
- On September 16, 2025, the Federal Reserve reconvened for a two-day meeting likely to approve a 0.25% rate cut amid weakening labor data.
- This decision follows recent labor market deterioration and inflation rising 2.9% year-over-year in August, fueling recession concerns in the US.
- Traders showed about 96% confidence in the upcoming cut, with forecasting firms predicting further quarter-point reductions in the US through 2026 and beyond.
- Claudia Sahm, former Fed economist, explained that rate cuts are driven by bad news on employment and warned future Fed meetings will remain contentious.
- The rate cut aims to support economic resilience but also raises challenges for policymakers managing inflation and market expectations amid these tensions.
232 Articles
232 Articles
Fed expected to cut rates for first time in 2025 amid Trump pressure
The Federal Reserve is expected to announce its first interest rate cut this year on Wednesday despite signs of tariffs pushing inflation higher amid rising concerns about the labor market.Policymakers on the Federal Open Market Committee (FOMC) are expected to cut the benchmark federal funds rate by 25 basis points, the first since December 2024, which would lower the target range to 4% to 4.25%.Markets have priced in a cut, with the CME FedWat…
US shares rose on Tuesday, while investors celebrate the confirmation of the new governor of the Federal Reserve, Stephen Miran, and are preparing for a crucial week. Miran's arrival takes place just in time for him to participate in a key vote on interest rates.The S&P 500 (^GSPC) rose by 0.1%, and the Nasdaq Composite (^IXIC), of great technological weight, advanced by 0.2%.On the other hand, the Dow Jones Industrial Average (^DJI) went back b…
Federal Reserve governors kick off policy meeting with Lisa Cook in attendance
Over the next two days, all eyes will be on the Federal Reserve as governors kick off their policy meeting. The big question is whether the board will cut interest rates. It's a task President Donald Trump has been pressuring them to do for months. Also notable as the meeting begins is Gov. Lisa Cook's attendance. It comes after a federal judge halted the Trump administration's effort to remove her from the Fed Board of Governors. Cook's legal b…
What To Expect After The Fed Cuts Rates
Has there ever been an interest rate cut with such a long, dramatic, scrutinized gestation period? No matter, Wall Street is already thinking, what have you done for me lately? The Federal Reserve reconvenes today for what may just be the most loaded, and consequential, central bank meeting in modern history. A quarter-point slash is now all but certain to be announced tomorrow — and indeed Fed Chairman Jerome Powell has hinted as much since th…
The U.S. Senate confirmed on Monday September 15 the appointment of Stephen Miran, Donald Trump's economic adviser, to the Federal Reserve. He will sit on Tuesday at a decisive Central Bank meeting on interest rates, while the White House leads a real arm of arms with the officials of the U.S. Federal Bank, notably in court.
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