President Trump made the statement less than 24 hours after suggesting in a private meeting that he was leaning in favor of dismissing the head of the nation’s central bank.
The Federal Reserve will continue to wait and see how the economy evolves before deciding whether to reduce its key interest rate, Chair Jerome Powell said Tuesday.
Michelle Bowman, who was appointed to the Fed’s board of governors by Donald Trump in 2018, is the second high-profile official to express support for a potential July cut in as many days.
Many economists and Wall Street investors still expect the Fed will reduce rates two or three times this year.
President Trump and Treasury Secretary Scott Bessent have said that inflation has steadily cooled and high borrowing costs are no longer needed to restrain price increases.
The remarks marked a notable shift in tone from just a day earlier, when President Trump referred to Federal Reserve Chair Jerome H. Powell as a “major loser” on his social media platform, Truth Social.
The message, posted early Thursday, came one day after Fed Chair Jerome Powell warned that the administration’s trade war was “highly likely” to spur a temporary rise in inflation.
Federal Reserve Chair Jerome Powell quoted Ferris Bueller during a speech about policy changes to the Economic Club of Chicago on Wednesday.
Federal Reserve Chair Jerome Powell’s focus on inflation suggests that the Fed will likely keep its benchmark interest rate unchanged at about 4.3% in the coming months.
The Federal Reserve has again kept its interest rate at about 4.3%, as the central bank evaluates the impact of the Trump administration’s policies on the economy.
Federal Reserve Chair Jerome Powell said the economy remains mostly healthy despite “elevated uncertainty.”
The Federal Reserve is prepared to keep its key interest rate unchanged for now as inflation remains elevated and the job market is solid, Chair Jerome Powell said Tuesday.
The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed.
Fed officials have clearly signaled they expect to skip a rate hike, at least in January, to evaluate the job market and economy.
While sales of previously occupied U.S. homes rose in November for the second straight month, the housing market was on track to end 2024 as its worst year for sales since 1995.
New quarterly projections suggest that consumers may not enjoy much lower rates next year for mortgages, auto loans, credit cards and other forms of borrowing.
Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting.
Even if inflation continued declining to the Fed’s 2% target, officials said, “it would likely be appropriate to move gradually” in lowering rates, according to minutes of the November 6-7 meeting.
Federal Reserve Bank of Chicago President Austan Goolsbee said he supports additional interest rate cuts—although he also said it’s difficult to determine the ideal rate.
The U.S. economy is strong and should continue to grow next year, Fifth Third Bank Chief Investment Strategist Tom Jalics said at IBJ’s 2025 Economic Forecast breakfast Thursday.
