Donald Trump, federal reserve and interest rates
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21hon MSN
President Donald Trump’s pressure campaign against the Federal Reserve and Chair Jerome Powell to lower interest rates entered a new front this week.The latest line of attack comes from Office of Management and Budget Director Russell Vought,
New tariffs unveiled by President Trump have further muddied the inflation outlook, Chicago Fed President Austan Goolsbee said, making it more difficult for him to support the rate cuts that the president has pressed for.
Federal Reserve Chair Jay Powell has reiterated that rate decisions will be data-driven — by inflation, and employment.
Fed meeting minutes reveal growing divisions among policymakers, with several officials signaling openness to a rate cut this year amid modest inflation pressures and tariff uncertainties, while others favor maintaining the current stance.
Some investors have staked out positions in futures markets that will profit if interest rates drop immediately after Jerome Powell’s term as chair ends
The debate over how and when the tariffs will affect prices has divided central bank policymakers over the trajectory for interest rates.
White House budget director Russell Vought is suggesting that Federal Reserve Chair Jerome Powell is in violation of government building rules in the renovation of the Fed’s headquarters.