Fed's Decision on Interest Rates Tonight: Will Trump's Wishes Be Granted?
Federal Reserve Potentially Falls Short of Trump's Expectations
Gotta keep your eyes glued to the TV tonight, folks! The Federal Reserve (Fed) is set to reveal whether they'll be giving in to President Donald Trump's demands for a lower interest rate. But don't hold your breath—most analysts think the word's biggest economy will remain on the same financial footing.
What's the Scoop on the Interest Rate Decision?
You heard that right! The Fed's gonna make its call on the interest rate today, and it's currently stationed within the range of 4.25 to 4.5 percent. Analysts predict that the central bank will ride this out, with no change on the way, despite the White House's constant moaning. With high inflation post-COVID-19 pandemic being long gone, there have been no cuts in the US since 2024—and none are expected tonight either. The Fed's decision will drop at 8:00 PM (CET).
The Scoop on Interest Rates: What's the Big Deal?
The interest rate is the Fed's superpower weapon to keep inflation under control and keep jobs aplenty. It sets the rate commercial banks borrow from the central bank, which in turn influences the interest rates we pay on loans.
Decision Time: mortgage rates, car loans, and more!
If the Fed lowers interest rates, long-term loans like mortgages and car loans might get cheaper. This encourages spending among Americans and makes credit-financed investments more tolerable.
Why's Trump So Fixated on Interest Rates?
The Fed's not exactly controlled by politics, but that doesn't stop politicians from shouting their praises. And President Trump has been the loudest hollerer, demanding lower interest rates for months to get the economy ultraboosted.
He's even gone so far as to personally attack Fed Chair Jerome Powell, calling him a "fool" last week. Trump even suggested that Powell should model the Fed after the European Central Bank (ECB), which dropped its interest rate to 2.0 percent recently. Yeah, sure, Trump. The ECB is fortunate to have that luxury, but the US economy is a whole 'nother beast.
Quitting Cold Turkey: Why Won't the Fed Lower the Rate?
If you thought Trump had uncertainty on his mind, the Fed sure as heck does! Here's what's keeping them up at night:
- The economy's in need of some serious TLC, thanks to Trump's tariffs threatening to increase the cost of imported goods and slowing growth.
- The geopolitical situation, such as the conflict between Iran and Israel, could escalate, causing turmoil in the oil market and oil prices to rise. That spells doom for the US economy.
- And let's not forget Trump's non-stop tweets, threatening to slap tariffs on even more countries. Could you imagine? The Fed just can't stomach that uncertainty.
One Step Ahead: Fresh Economic Forecasts On the Horizon
Along with announcing its interest rate decision, the Fed will whip up some fresh economic forecasts for economic growth, inflation, and anticipated rate cuts. In its last forecast in March, the Fed scaled back its economic growth projection to 1.7 percent, and hiked its anticipated inflation rate to 2.7 percent, all thanks to Trump's tariff announcements.
Trump, Trump, Trump: Politics, Money, and Power.
Intrigued? Well, sit tight! We'll bring you all the latest about the Fed's decision tonight, and keep you updated on the political drama behind it all.
The Fed's upcoming decision on the interest rate tonight might not align with President Donald Trump's desires for a lower rate, despite his persistent calls. Meanwhile, the European Commission has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation in the realm of business, politics, and general-news.
