Fed Meeting Starts Today—Here’s Why You Shouldn’t Expect Interest Rate Cuts Despite Trump’s Demands
The Federal Reserve will convene this week to vote on interest rates, and economists and investors widely expect the central bank to hold rates the same, despite repeated, loud requests from the Oval Office to slash rates.
The Fed’s rate-setting Federal Open Market Committee will meet Tuesday and Wednesday to discuss monetary policy, with a decision due out at 2 p.m. EDT Wednesday.
A press conference with Fed Chairman Jerome Powell will follow at 2:30 p.m.
Traders overwhelmingly expect the Fed to keep rates at the 4.25% to 4.5% range they’ve sat since December.
Contracts linked to Fed policy bets price in 97% odds of a hold, compared to a 3% chance of a 25 basis-point cut, according to CME Group’s FedWatch Tool.
Economists at the three largest investment banks – J.P. Morgan, Goldman Sachs and Bank of America – all predict the Fed will keep rates firm this week.
