From Malay Mail · · 1m 20s
Fed Holds Rates Amid Trump Pressure
US Fed likely to keep interest rates steady ahead of midterms despite Trump demands.
In brief
US Fed likely to keep interest rates steady ahead of midterms despite Trump demands. US Federal Reserve will hold interest rates steady at its meeting next week as markets price in a rate hike before year-end, avoiding political pressure ahead of November 3 US midterms. Originally reported by Malay Mail.
Fed meeting timing
US Federal Reserve meets next week ahead of November 3 US midterms.
Inflation context
Fed has missed two-per-cent inflation target for over five years with rates at 3.75 per cent to 4.0 per cent.
Trump's pressure
Trump frequently criticises Fed Chair Kevin Warsh over interest rates but has not targeted him directly.
Economic indicators
PCE price index hit pandemic-era peak of 7.2 per cent in 2022 before falling to 2.2 per cent by late 2024.
Energy prices impact
Global energy prices surged after US and Israel attacked Iran in late February, fueling inflation.
Loretta Mester's view
Former Cleveland Fed head Loretta Mester says Fed decision is based on economics, not politics.
Wendy Edelberg's view
Brookings Institution expert Wendy Edelberg believes Fed should avoid political discourse ahead of midterms.
Fed's potential action
Most policymakers may hold rates at meeting, waiting for December FOMC decision.
Trump's Fed attack
Trump has launched criminal probe against Fed Chair Powell and attempted to unseat Fed Governor Lisa Cook.
The headline
US Federal Reserve will hold interest rates steady at its meeting next week as markets price in a rate hike before year-end, avoiding political pressure ahead of November 3 US midterms.
