What will the Fed do with interest rates and how will Trump react?

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The Federal Reserve plans to announce the transfer of its next interest rate on Wednesday, which can respond by the President Donald TrumpWho recently called feeding feed to lower interest rates?

It is envisaged that the members of the Federal Open Market Committee (FOMC) will remain unchanged by 4.25% for the interest rate of the targeted benchmark funds, amounting to the first break of the Central Bank in the cutting cycle, three consecutive cuts that fluctuate. are from 5.25% to 5.5%.

Inflation continued in the economy, despite the 40-year-old 40-year-old 40-year-old inflation rate in June 2022. Fed Sause’s probability of Fed Sause was 99.5% during the January meeting, according to CME Fedwatch tools.

Fed’s expected pause can prompt Trump to restore his / her criticism of the Central Bank and Fed Chair Jerome Powell:passing last week to the president’s low interest rates.

Trump says not to shoot Fed Chair Jerome Powell

President Trump and Fed chair Powell

President Donald Trump offered Feed Chair Jerome Powell in 2017, but under his leadership criticized the policy of the Central Bank. (Saul LOEB / AFP VIA GETTY Images / Getty Images)

Speech World Economic Forum Last week, President Trump noted that he plans to lower oil prices and, in turn, energy prices for inflation, which should help feed interest rates.

“It simply came to our notice then. And, as they should be thrown all over the world, “said Trump.

Trump who nomplated Powell to play his role Fed chair In 2017, he criticized the president many times over the years. During the first term in the White House, Trump threatened to fire Powell and called him “Chapter of Bones.”

While Trump was campaigning last year to return to the White House, he criticized Fed’s rates as “political”.

The probability of the US decline is decreasing. Nabe economists

John Roberts (2nd) presidential oath of Supreme Court (2nd) is hosted by Donald Trump (2-l) as Former President of Lady Melan Trump (3rd) and former USA Vice President Kamala Harris (R) The United States Capital Rotunkan in Washington, which won Kamala Harris, has been sworn in today's 47th president, despite planned outdoor ceremonies. because of the forecast. Shawn TheW / Pool Reuters

The January Federal Reserve is the first to start the second term of President Donald Trump. (Shawn thew / Swimming Pool Reuters / Reuters Photos)

The possible impact of Trump’s economic policy, including tax reduction and federal expenses, as well as import tariffs, will probably be determined when Powell will not speak to Wednesday after Fed’s decision.

Bank of America Global Studies have written to investors who preview the Feeded meeting.

“Powell will probably make Fed’s response to the Celiber Policy Agenda. We believe that he sticks to his position that there are a lot of uncertainty that the policy should be carried out, “said American banks. “But he will probably say that some members of FOMC (such as Waller and Williams) have already been integrated into politics in their worldview.”

Fed Rates Show ColorsMakers See Immigration, Tariff Movements Creating Uncertainty Inflation

Fed Chair Jerome Powell holds a press conference

The Federal Reserve Chair Jerome Powell said that the Central Bank would decide on the latest tendencies of economic data. (Photo: Liu Jie / Xinhua Via Getty Images / Getty Images)

Earlier this month, FOMC published the minutes of its December meeting, in which politicians referred to the high level of economic impact of possible trade changes. Immigration policyA number

This uncertainty, which continues stable inflation in regular economic data issues, has offered that process Slowing down inflation Returning to its 2% target “could last longer than previously predicted.”

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By extending inflation, Fed Watchers expect policy makers to transfer the risk of interest rates in 2025.

 
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