What Powell Is Definitely Doing at the Next FOMC Meeting š„āļø
All eyes are on the upcoming Fed meeting on May 6ā7, and here's what you can bet Jerome Powell is going to do:
Powell knows there's pressure from President Trumpāboth publicly and behind the scenes. Trump keeps calling for rate cuts, pointing to U.S. economic strength and the need to stay globally competitive. But Powell wonāt want it to look like heās yielding to political demands.
Instead, expect him to focus on signs of economic recoveryālike strong job data, steady markets, or cooling inflation. This gives him a solid reason to announce a 0.25% rate cut.
This lets Powell support the markets without making it look like Trump is calling the shots. Heāll also likely mention risks like tariffs and global uncertainty to show the Fed is still cautious.
In short:
āWeāre lowering rates a bit because the economy supports itānot because of politics.ā
A smart move that boosts confidence and protects the Fedās credibility.
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