US Federal Reserve Resists Pressure to Cut Interest Rates Amid Trump's Fury
The US Federal Reserve has held interest rates steady for now, defying intense pressure from President Donald Trump to cut rates. The decision was made by a majority of members on the Fed's federal open market committee (FOMC), which voted to pause rate cuts after slashing rates three times in the fall.
The Fed is currently operating at an interest rate range of 3.5% to 3.75%, and while economists argue that the Fed's independence is crucial for economic stability, Trump has been pushing aggressively for lower rates, claiming they cost the US economy "hundreds of billions of dollars".
Trump's attacks on Fed Chair Jerome Powell have reached a boiling point, with the President calling Powell "stiff" and saying that rate cuts could have been doubled. However, Powell remains resolute in defending the Fed's independence, stating that cutting rates based solely on political pressure would undermine the institution.
Powell also made it clear that he believes interest rates are at a neutral level, suggesting that further rate cuts are unlikely. The Fed Chair emphasized the importance of retaining credibility and not losing faith in the institution's ability to make decisions in the best interests of the public.
The situation has become increasingly tense, with Trump launching a personal investigation into Powell's handling of the Fed's refurbishment project, which has raised concerns about the Fed's independence. However, despite swift backlash from business leaders and some Republican lawmakers, Powell remains committed to defending the institution's integrity.
In a remarkable move, Powell recently called the investigation a "pretext", stating that it was intended to intimidate him into following Trump's economic agenda. The investigation is ongoing, but for now, the Fed's decision to hold interest rates steady has sent a clear message: the Fed will not be swayed by politics when making monetary policy decisions.
As the situation continues to unfold, one thing is certain – the US economy is watching with bated breath as the Fed navigates these treacherous waters. With Powell firmly at the helm, it remains to be seen how the Fed's independence will hold up under intense pressure from the White House.
The US Federal Reserve has held interest rates steady for now, defying intense pressure from President Donald Trump to cut rates. The decision was made by a majority of members on the Fed's federal open market committee (FOMC), which voted to pause rate cuts after slashing rates three times in the fall.
The Fed is currently operating at an interest rate range of 3.5% to 3.75%, and while economists argue that the Fed's independence is crucial for economic stability, Trump has been pushing aggressively for lower rates, claiming they cost the US economy "hundreds of billions of dollars".
Trump's attacks on Fed Chair Jerome Powell have reached a boiling point, with the President calling Powell "stiff" and saying that rate cuts could have been doubled. However, Powell remains resolute in defending the Fed's independence, stating that cutting rates based solely on political pressure would undermine the institution.
Powell also made it clear that he believes interest rates are at a neutral level, suggesting that further rate cuts are unlikely. The Fed Chair emphasized the importance of retaining credibility and not losing faith in the institution's ability to make decisions in the best interests of the public.
The situation has become increasingly tense, with Trump launching a personal investigation into Powell's handling of the Fed's refurbishment project, which has raised concerns about the Fed's independence. However, despite swift backlash from business leaders and some Republican lawmakers, Powell remains committed to defending the institution's integrity.
In a remarkable move, Powell recently called the investigation a "pretext", stating that it was intended to intimidate him into following Trump's economic agenda. The investigation is ongoing, but for now, the Fed's decision to hold interest rates steady has sent a clear message: the Fed will not be swayed by politics when making monetary policy decisions.
As the situation continues to unfold, one thing is certain – the US economy is watching with bated breath as the Fed navigates these treacherous waters. With Powell firmly at the helm, it remains to be seen how the Fed's independence will hold up under intense pressure from the White House.
Trump's tantrums are getting old, and this latest move by the FOMC is music to my ears 
! I mean, who needs a president breathing down their neck when it comes to monetary policy? The Fed's independence is crucial for economic stability, and if that means Powell has to deal with some heat from Trump, so be it 
. It's all about credibility, right? And let's not forget, Powell has shown he's got the chops to handle these kinds of situations 
. As a tech enthusiast, I'd rather see the Fed focus on getting interest rates right for innovation and growth in the private sector 
!
thinkin about this situation makes me wonder, what happens when the people in charge are more worried about keepin their own skin intact than doin whats best for the economy? it's like they say, with great power comes great responsibility 
. Powell's gotta stay strong and defend the Fed's independence or else they're just gonna get pulled down by all the pressure from Trump's camp. it's a tough spot to be in, but I guess that's what makes him a good leader – he's not afraid to take a stand even when it's unpopular 
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. if they were gonna cut interest rates just 'cause Trump said so, it'd be like throwing all their credibility out the window 
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. Powell's all about that independence life, and it's good to see him standing firm 
. It's not just about the rates, though - it's about maintaining credibility and trust in the institution. If they start cutting rates because of Trump's tantrums, it'll undermine everything they do. And let's be real, we don't need a Fed that's beholden to the President's whims 
. The economy's watching this drama unfold with bated breath, for sure. I'm just curious to see how long this standoff lasts... 
according to fed funds futures, odds of rate cuts in next 2 meetings are only 27% and 14%, lol what's the hold up? 
btw, fed funds are currently at 3.7%, just 0.2% above the neutral zone, what's next? 
, I've seen many economic cycles come and go. What concerns me is that this whole situation might distract from more pressing issues – like investing in infrastructure or education 
️. The fed's got to maintain some level of independence so they can make decisions based on data and economic trends, not just because you're breathing down their necks 
. And let's be real, if the fed starts cutting rates every time Trump wants something, that'd be a recipe for disaster 
... They need to keep credibility intact so we don't end up with hyperinflation or even worse 
. Powell's right on point, he needs to stand firm and not get intimidated by Trump's antics