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 on Wednesday last Wednesday, Powell repeatedly shaved Fed from September 2024 to December, and then “hurry” to go further to go further. I insisted.
On Saturdays, Trump’s three largest trading partners in the United States, Canada, Mexico, and China, the Fed’s decision -making became potentially complicated. Economists are worried that tariffs will raise prices when inflation shows signs of easing.
