The Federal Reserve meets this week, interest rates unchanged

Federal Reserve Chairman Powell resisted pressure from Trump and decided to keep current interest rates unchanged. Trump has been demanding lower rates and has even publicly criticized Powell as a "loser," threatening to fire him. However, the law protects the independence of the Federal Reserve Chairman, making it difficult for Trump to actually replace him.

**Why does Trump want to lower interest rates?**

- Lowering interest rates can make loans, credit cards, and mortgages cheaper, stimulating the economy

- He believes inflation has already decreased, and it is time to loosen policy

**Why does the Federal Reserve insist on keeping it unchanged?**

- Although inflation has eased, rising tariffs could push prices higher

- April employment data is good (with 177,000 new jobs), providing the Federal Reserve with a reason to wait and see

- Their primary goal is to stabilize prices, even if borrowing costs are temporarily high

**Why are other countries lowering interest rates while the U.S. is different?**

- The European Central Bank has begun lowering rates, but inflation has rebounded

- The Bank of Canada is also hesitant, with an unclear economic outlook

**What to pay attention to next?**

- The services index announced on Monday

- Thursday's unemployment claims data (which fluctuated due to the holiday the previous week)

**The White House also wants to weaken the Federal Reserve's power**

The Trump administration is attempting to reduce the independence of the Federal Reserve to make it easier to control monetary policy.