If the Fed does not cut interest rates this week, prepare for Trump's "bombardment"
week, the independent Federal Reserve will definitely maintain interest rates unchanged. Undoubtedly, the economy is slowing down, but it has not reached the point of forcing policymakers to react too strongly. Especially when inflation pressures (especially personal consumption expenditures) are still ongoing. In this context, the potential impact of tariffs will definitely make the Federal Reserve remain vigilant.
From the current situation, the market has not included expectations of a rate cut this week. Trump reiterated over the weekend that he has no intention of firing Powell, but please note that over the weekend he also took the time to post that there is no inflation and the Federal Reserve should lower interest rates!
Therefore, if the Federal Reserve does not do so this week, we will see how sharp Trump's gaze will be on Powell. It is not ruled out that Trump will fiercely criticize Powell again for this decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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