U.S. President Donald Trump aims to sign a presidential decree on January 31, 2025 in an elliptical office in Washington, Washington.
Carlos Barrier | Reuters
President Donald Trump agreed last week to the decision to not change interest rates.
In exchange with reporters on Sunday, Trump said that holding an important borrowing level in a range of 4.25 % to 4.5 % is the right move for the Fed.
“I’m not surprised,” he said. “At this point, it was correct to hold the price.”
The statement was completely contrasting to a Trump, a Trump delivered when talking remotely to the World Economic Forum in Davos, Switzerland. In the appearance of January 23, Trump said, “We require interest rates soon.”
The president has no direct authority for the Fed, but he nominates the chair and other members of the Board. Currently Jerome Powell is a candidate for Trump and is a frequent target of the president’s criticism.
The market does not expect the Fed to lower the price until at least June. At a post meeting press conference last Wednesday, Powell needs to be “in a hurry” after shaving a complete percentage point from the FRB fund rate from September to December 2024. I repeatedly asserted that there was no.
On Saturdays, Trump’s three largest trading partners, Canada, Mexico, and China, had a potentially complicated FRB decision. Economists are worried that tariffs will raise prices when inflation shows signs of easing.
