In front of the World Economic Forum in Switzerland Davos, Trump said that interest rates were lower than the current level. A sign that he may have set the possibility of fighting with the Federal Reserve.
The Federal Reserve will announce the next interest rate on Wednesday. Donald TrumpRecently, I asked the Fed to reduce interest rates.
Members of the Federal Open Market Committee (FOMC) are expected to reach the goal of the benchmark federal fund rate, which has not been changed in a range of 4.25 % to 4.5 %. Reduction of interest rates reduced from 5.25 % to 5.5 %.
Inflation has continued in the economy, despite the fact that it has been considerably alleviated from the 9.1 % annual inflation recorded in June 2022 from the annual inflation of 9.1 %. The latest reading of the Consumer Price Index (CPI) was 2.9 %, exceeding the 2 % Fed's target rate. 。 Most of the stubborn inflation, according to the CME FEDWATCH tool, the FRB was paused at a one -time meeting of 99.5 %.
The Fed's expected pause may encourage Trump to update his criticism of Central Bank and Fed Chairman Jerome Powell, following the request of the President last week.
Trump says he will not fire Jerome Powell
President Donald Trump nominated Jerome Powell in 2017 but criticized the central bank's policy under his leadership. (SAUL LOEB / AFP via Getty Images / Getty Images)
In a speech for the World Economic Forum last week, President Trump plans to reduce the price of petroleum and reduce energy prices to deal with inflation. 。
“When the petroleum price drops, the interest rate will soon fall, and as well, they should decline around the world. Interest rates should continue to us,” said Trump.
Trump, who nominated Powell in 2017 as FED chair, has repeatedly criticized the chair for many years. During his first term in the White House, Trump threatened to fire Powell and called him “Bone head.”
Trump was campaign to return to the White House last year, but he said he did not try to dismiss Powell in June and repeated last month, but criticized the Fed interest rate reduction as “political.”
Ods of our recession is decreasing: Nabe Economists
This is the first time in the federal preparation system meeting since the start of President Donald Trump's second term. (Sean Tae -Woo /Pool via Reuters /Reuters)
The potential impact of Trump's economic policy, including tax reduction, federal expenditure plans, and import plans for imports, is probably noticeable when Powell talks to the press on Wednesday after the announcement of Fed and on Wednesday. Will do.
Bank of America Global Research plans to compare Trump's policies to the next movement of the Powell post meeting and the Central Bank forecasting the future. I wrote it in a memo to investors who preview the Fed Conference. Reduction or further pause.
“Powell will probably be asked again about Trump's policy agenda about the Fed's response to the agenda. He will stick to his stance that there is a lot of uncertainty about which policy will be implemented. , “But be aware that some FOMC members (such as WILLIMS, etc.) have already integrated their policies in their prospects.”
The FRED minutes indicates that policy creators look at immigrants, and tariff shifts create the uncertainty of inflation.
Jerome Powell, chairman of the Federal Reserve, states that the central bank will make a decision based on the latest trends in economic data. (Photo by LIU Jie / Xinhua via Getty Images / Getty Images)
Earlier this month, FOMC published a meeting of the meeting in December, and policy proprietors quoted advanced uncertainty about the potential changes in trade and immigration policy.
Its implicitity suggests that the process of returning inflation to a 2 % goal, along with the sustainable inflation of normal economic data release, “it may take longer than expected before”. 。
Click here to get a FOX business on the go
According to the CME Fedwatch tool, if the inflation is prolonged, PolicyMakers will reduce the speed reduction to the rate reduction in 2025.
