Federal Reserve set to announce interest rate decision amid Trump pressure

The Federal Reserve is scheduled to announce its latest decision on interest rates this week amid President Donald Trump’s efforts to pressure the central bank to reduce rates.

The FOOC Open Market Committee, a two -day monetary policy committee, will start a two -day meeting and will announce the interest rate decision on Wednesday, when the Federal Reserve Chairman Jerome Powell will hold a press conference.

Trump has repeatedly criticized Powell for not lowering prices, which he says is costing the federal government billions of dollars in the expenses of interest in the service of national debt. Powell pointed to concerns about the definitions that pushed inflation away from the target rate of 2 % of the Federal Reserve as a reason for the price cuts.

Last week, Trump became the fourth president who visited the federal reserve, as he and the allies went to take a tour at the central bank headquarters with a continuous renewal of criticism of the budget. During the visit, the president took the personal opportunity to repeat his call for interest rate discounts.

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“I think Jerome Powell, I think we have a very good meeting, forget the building that is out of control and all, but I think we have a very good meeting on interest rates,” Trump said in the wake of his conversation with Powell. “Our congratulations said, that the country is very well affected, and I got it to mean that I think it would start recommending low rates.”

Powell stressed that the federal reserve is not in a hurry to reduce interest rates due to the uncertainty surrounding the impact of definitions on inflation and consumer prices.

He has said that in its current position, the Federal Reserve is in a good position to respond to the risks of both sides of the double delegation of the central bank, which is to enhance stable prices in line with the long -term inflation goal, as well as enhance the maximum employment. The inflation remained constantly higher than the Federal Reserve’s goal by 2 %, despite the progress of slowing its pace with the 40 -year -old heights in 2022 during the Biden administration.

Federal Reserve Chairman Jerome Powell said the Federal Reserve is in a good position to monitor the inflation market and the labor market before deciding on interest rates. (Alex Wong / Getty Images / Getty Images)

Although Powell is the head of the Federal Reserve, he and the other rulers who make up 12 people are responsible for making collective decisions regarding the moves in the Federal Federal Money Money Money The Central Bank. This range was at 4.25 % to 4.5 % since the last FOMC reduction in December 2024.

Trump, head of the Federal Reserve Powell, says, says interest rates should be less than 1 %

A member of the committee, the governor of the Federal Reserve Bank, indicated Christopher Waller, before the meeting that he believes that the Federal Reserve should reduce interest rates, and refuse concerns about the definitions that feed inflation, and they say that it will lead to an increase in prices for one time that policy makers should look in the past.

Federal Reserve Governor Michelle Bowman also said she believed that a reducing interest rate at this meeting may be needed to prevent the labor market from weakening.

The Federal Reserve Governor Christopher Waller said that the Federal Reserve should consider high prices caused by customs tariffs and low interest rates. (Brendan McDdedide / Reuters / Reuters)

The market expects the Federal Reserve will retain fixed rates again for the fifth consecutive meeting, as the CME Fedwatch tool showed a 96.9 % chance of the remaining prices on its current level, which increased from 81.4 % per month.

If this FOMC meeting continues as the market expects, Waller, Bowman and other similar policy makers in thinking against the majority can explain the authors who explain how they believe that the Federal Reserve Bank should have been going. Bowman was the latest federal background governor of the author of a general opposition when she said that the Federal Reserve had to reduce 25 basis points instead of last September 50.

Watch it: Federal Reserve Renew

Federal Reserve Governor Michelle Bowman said the price cuts are needed soon to support the labor market. (Grame Sloan / Bloomberg via Getty Images / Getty Images)

Despite the different views of the Federal Conservatives, the market believes that the majority of FOMC will come to reduce prices before the end of 2025.

The CME Fedwatch is currently showing a 63.7 % opportunity to reduce 25 basis points at the next FOMC meeting in mid -September. After the Federal Reserve meeting in late October, the tool shows a 50.5 % chance that interest rates are 25 basis points and an opportunity of 29.7 % that it will be less than 50 basis points.

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Moreover, it indicates a 19 % chance that the target rate is 75 basis points than its current level after the Federal Reserve meeting in early December, compared to an opportunity of 42.8 % of the 50 -point reduction, the opportunity of 30.7 % of the 25 -year -old reduction and an opportunity of 7 % of the money rate at its current level during the end of the year.