POWELL WILL DO THIS AT THE NEXT FOMC
At the next Fed meeting, which takes place on May 6 and 7, many people are watching to see what Chairman Jerome Powell will say and do. Therefore, I assure you this is what will happen 🔥✌️
Powell understands the pressure coming from President Trump... both publicly and behind the scenes. Trump has repeatedly pressured for rate cuts, citing economic strength and the need to remain competitive amid global changes. But Powell does not want to give the impression that he is succumbing to political influence.
Instead, he will likely talk about how the U.S. economy is beginning to recover, perhaps mentioning strong employment numbers, stable markets, or declining inflation. This will help him justify a small cut in interest rates, probably just 0.25%.
By doing this, Powell can support the market without seeming like Trump is giving the orders. He will likely still mention concerns about tariffs and global risks to show that he is being cautious.
Overall, Powell's message will likely be: “We are lowering rates a little because the economy is doing better—not because of politics.” In this way, he maintains his credibility while giving the market the boost it hopes for.
