Trump wants the Fed to cut rates on Wednesday. Will Jerome Powell oblige?
CBSN
President Trump has been pushing the Federal Reserve to cut interest rates, writing on social media last month that the central bank has been "TOO LATE AND WRONG" in holding off on further reductions. Now, the Fed is set to meet on Wednesday to make its next rate decision — but Mr. Trump may need to wait longer to get his cuts.
The Federal Reserve is expected to hold its benchmark rate steady at its May 7 meeting, according to CME Group's FedWatch. The group pegs the likelihood at 99% that the Fed will maintain the federal funds rate at its current range of 4.25% to 4.5%, the same level that it's been at since December, when the central bank made its most recent reduction.
The Fed's meeting comes at a time when the U.S. economy is sending mixed signals, with GDP unexpectedly falling into negative territory in the first quarter, while job growth topped forecasts in April. At the same time, Wall Street economists are hiking their recession risk for the U.S. economy due to the impact of Mr. Trump's tariffs, which have hit imports from China with a 145% import duty — costs that are largely passed onto American consumers in the form of higher prices.
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