- Despite President Trump’s repeated pressure on Jerome Powell and the U.S. Federal Reserve to cut interest rates, ongoing tariff uncertainty may make the Fed reluctant to act, with officials citing unknown impacts of ever-changing trade policy as a reason for holding rates steady. That said, Goldman Sachs is warming to the notion that the FOMC may start cutting from September and continue to normalize through 2026, leading to a boost in the S&P 500.
Despite the president’s pressure on Jerome Powell and the Fed to cut the base rate, it seems Donald Trump himself may prove to be the biggest obstacle in the way of such a move.
