Federal Reserve Expected to Maintain Interest Rates Amid Economic Pressure

The Federal Reserve is widely expected to keep its key interest rate unchanged at its upcoming policy meeting, despite persistent public pressure from President Trump and his administration to cut rates. Trump and Treasury Secretary Scott Bessent argue that inflation has cooled enough to warrant lower borrowing costs, but Fed officials prefer to wait and observe the economic impact of recent tariffs before making any adjustments. Strong job growth and a resilient labor market have reinforced the case for holding rates steady, although there is concern that ongoing trade tensions and tariffs could slow economic growth or reignite inflation. While Trump has criticized Fed Chair Jerome Powell, he has recently stated he does not intend to fire him, signaling a reduction in direct threats to the central bank's independence. Analysts note that the Fed is unlikely to cut rates without clearer signs of economic trouble, such as a significant drop in hiring or a sharp downturn in key indicators. The broader economic outlook remains uncertain, with heightened risks from trade policies and a cautious approach from the Fed as it balances inflation and employment concerns.