- Markets expect the Fed to hold rates steady today, despite pressure from the White House and public calls for cuts from FOMC members like Governor Waller. Analysts see signs of a shift toward easing—possibly beginning in September—but warn that Trump’s fiscal policies may complicate Powell’s efforts to control inflation, regardless of rate decisions.
Jerome Powell has a chance to make his life significantly easier this week. If he was minded, he could recommend at the meeting of the Federal Open Market Committee (FOMC) that the base rate should be cut—thus removing some of the pressure the White House is exerting on the Fed.
