News list for "Powell will not"
US President Donald Trump last month used the cost of federal debt as a new reason to press Powell to cut interest rates. But a new analysis shows that firing the Federal Reserve chairperson and forcing him to lower interest rates will not help. Matthew Luzzetti, chief US economist at Deutsche Bank, and others wrote that replacing Powell would not change the cost of interest on the Treasury's debt. Trump has repeatedly called for a 3 percentage point rate cut, saying it would save more than $1 t...
Some Fed watchers do not expect Mr. Powell to make a specific forecast for September, but rather to remind everyone that the Fed will now focus more on jobs because the job market is weakening. The Fed has a dual mandate to maintain price stability and full employment. The latter has become increasingly important as unemployment has risen, putting more pressure on the Fed to act. The unemployment rate rose to 4.3 per cent in July, its highest level since October 2021. Wilmington Trust Bond Inves...
