Federal Reserve expected to hold interest rates steady, defying Trump
ABC News
The Federal Reserve is widely expected to defy the wishes of President Donald Trump, who has called for significantly lower interest rates.
The Federal Reserve on Wednesday is set to announce its latest decision on the level of interest rates, marking its first rate move since news surfaced of a federal criminal investigation into Fed Chair Jerome Powell.
The investigation ratcheted up an extraordinary clash between the nation's top central banker and the White House, which has urged the Fed to significantly reduce interest rates.
The central bank is widely expected to defy President Donald Trump's wishes, opting instead to hold interest rates steady. The anticipated move would end a string of three consecutive quarter-point rate cuts, aligning with a cautious approach outlined by Powell last month, before reports of the investigation into his conduct.
"We're well positioned to wait and see how the economy evolves," Powell said at a press conference in Washington, D.C., on Dec. 10.
Futures markets expect two quarter-point interest rate cuts this year, forecasting the first in June and a second in the fall, according to CME FedWatch Tool, a measure of market sentiment.
