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As the Federal Reserve prepares for its upcoming meeting, there is anticipation surrounding President Donald Trump’s scrutiny of the US central bank’s policies.
While it is widely expected that the Fed will maintain interest rates at the current level of 4.25-4.5 per cent, the focus will be on any potential shift in their outlook and comments from chair Jay Powell during the press conference.
Following recent data showing a mix of slowing inflation and strong job growth, there is ongoing debate about the necessity and timing of further rate cuts.
President Trump’s comments on interest rates and oil prices have added to the discussion, despite previous tensions between him and Powell.
Meanwhile, the European Central Bank is also expected to announce another interest rate cut, reflecting a more aggressive approach compared to the US Fed. ECB President Christine Lagarde’s recent statements indicate confidence in achieving the inflation target while acknowledging potential economic challenges.
Similarly, the Bank of Canada is likely to cut interest rates in response to economic trends, although recent data suggests a more cautious approach may be necessary.