The Federal Reserve is unlikely to cut rates this month, potential for future cuts
AI Summary
According to BlockBeats, Nick Timiraos, often referred to as the 'mouthpiece of the Fed', reported that the Federal Reserve does not expect to lower interest rates at its meeting later this month. However, Federal Reserve Chairman Jerome Powell indicated that a rate cut may be possible later this year if inflation shows positive trends or if the labor market weakens.
U.S. President Donald Trump seeks to reduce the cost of servicing the federal deficit, although his tax cuts may potentially increase the deficit. Despite this, central banks in developed economies usually resist such pressures, except in extreme situations, such as war. They believe that maintaining stable inflation is crucial to preserving confidence in their national currencies.