US EditionUS Fed Set to Hold Firm Against Trump Pressure
UNITED STATES, JUL 29 – The Federal Reserve balances inflation risks and economic growth, maintaining rates despite President Trump's push for cuts and tariff-driven price increases, with unemployment at 4.1%.
- On Wednesday, the Federal Reserve is expected to leave its short-term rate unchanged despite President Donald Trump’s calls for a cut, amid mixed signals on inflation and low unemployment.
- With unemployment at 4.1%, mixed signals from tariffs prompt caution, as Fed officials see reason to pause.
- Swonk and Daco highlighted tariff risks and weakening demand, with Swonk calling it `a high-wire act for the Fed, because they're balancing a lot of risks without a net,` and Daco warning, `More demand erosion is likely in the months ahead.`
- Fed governors Christopher Waller and Michelle Bowman could dissent in favour of rate cuts, with two dissenting votes expected as soon as July, and President Donald Trump likely to renew criticism after the hold.
- Trump’s mounting pressure on Fed Chair Jerome Powell has sparked fears he may try to fire the chair, and analysts warn firing Powell could push 10-year Treasury yields higher.
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70 Articles
Rarely: two of the members of the Central Bank's Monetary Policy Committee who were appointed by Donald Trump opposed on Wednesday the decision not to lower the rent of the money taken by a Fed president, Jerome Powell, who was increasingly challenged by the White House tenant.
Fed set to hold firm against Trump pressure
WASHINGTON - The US Federal Reserve is expected to defy aggressive pressure from President Donald Trump and keep interest rates unchanged Wednesday, though divisions about the best response to tariff risks may bubble to the surface.
The Fed is likely to hold interest rates steady despite intense pressure from Trump
The Federal Reserve is expected to leave its benchmark interest rate unchanged, but a rate cut is possible in September. President Trump has been urging the central bank to lower borrowing costs.
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