When the Federal Reserve does not cut interest rates this week, prepare for Trump's "bombardment"
2025-05-05 05:10:26
According to financial website Forexlive, this week, the Federal Reserve, which remains independent, will definitely keep interest rates unchanged. There is no doubt that the economy is softening, but not to the point of forcing policymakers to react too strongly. Especially with price pressures (especially personal consumption expenditures) still persisting. In this context, the potential impact of tariffs will certainly keep the Federal Reserve on guard. From the current situation, the market did not factor in the expectation of interest rate cuts this week. Powell reiterated over the weekend that he has no intention of removing Powell, but please note that he also found time to post at the weekend: "No inflation, the Federal Reserve should lower interest rates!!" So if the Fed doesn't do it this week, we'll see how sharp Trump's gaze will be on Powell. I don't rule out that Trump will lash out at Powell again over this decision, which will only get us back on the merry-go-round again. (Golden Ten)
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