The market’s attention will be focused on the precise wording of the Federal Reserve‘s statements and the subsequent press conference, as it is indeed widely anticipated that there will be no changes to the current interest rate. Analysts will be closely observing for any signs of dissent within the Federal Open Market Committee (FOMC) or if all members are in agreement, especially in light of President Donald Trump‘s persistent pressure on Fed Chair Jerome Powell.
Two officials appointed by President Trump to the Fed’s Board of Governors, Governor Christopher Waller and vice Chair for Supervision Michelle Bowman, are known to support a slight reduction in interest rates, and thier stance will be of particular interest.
President Trump has consistently advocated for lower interest rates, arguing that inflation is not a significant risk. He has frequently criticized Chair Powell, asserting that the Fed’s policies force the government to incur higher borrowing costs for its deficits and increase mortgage rates for consumers.
The pressure from the Trump administration on the Fed was highlighted last week when criticism of a Fed building renovation project led the President to visit the site.While this visit may have reduced the immediate risk of Trump attempting to dismiss Powell over the renovation, his calls for interest rate cuts remain.
Following the release of positive U.S. GDP data on Wednesday, President Trump posted on social media, “GDP of the second recent trimester: 3%, Much better than expected! ‘Too late’. you have to lower the rate now! Without inflation! May people buy and refine their houses!”
in contrast,Fed Chair Jerome Powell has affirmed his intention to serve his full term as head of the Federal Reserve,which is scheduled to conclude in May 2026.
