- The Federal Reserve, led by Chairman Jerome Powell, is expected to remain on the sidelines amid economic uncertainty and inflation concerns despite markets formerly expecting rate cuts. Trump's tariff policies have added to volatility, making the Fed more data-dependent. Analysts predict two rate cuts in 2025 but caution that the Fed will wait for clear economic deterioration before making any moves.
Even before taking office, Donald Trump sought to bring the Federal Reserve’s decisions into the court of public opinion. But while Fed officials insist they are accountable to the public, chairman Jerome Powell has avoided direct clashes with the White House.
