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When the Federal Reserve doesn't cut interest rates this week, prepare for Trump's "indiscriminate bombardment."

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2025-05-05 06:07:45
This week, the independent Federal Reserve is certain to keep interest rates on hold. There is no doubt that the economy is weakening, but not to the point of forcing policymakers to react too forcefully. Especially with price pressures (especially personal consumption spending) continuing. Against this backdrop, the potential impact of tariffs is sure to keep the Fed on guard.
From the current situation, the market did not factor in the expectation of this week's interest rate cut. Trump reiterated over the weekend that he has no intention of firing Powell, but please note that he also took time to post over the weekend: No inflation, the Federal Reserve should lower interest rates!
Therefore, if the Fed does not do so this week, it will see how sharp Trump's eyes will be on Powell. It is not ruled out that Trump will lash out at Powell again over the decision. (Jin Ten)
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