$BTC Most experts are predicting the Fed will hold rates at the 4.25-4.50% level when central bank Chairman Jerome Powell emerges from the two-day Federal Open Market Committee (FOMC) meeting tomorrow. But U.S. President Donald Trump is the wildcard in that prediction, as he has applied immense pressure on Powell to cut rates or resign. Stock indices were mixed and bitcoin was mostly flat at $117K on Tuesday, as markets braced for what will likely be a politically charged day, when Powell addresses the nation at his scheduled press conference tomorrow.
Trump hasn’t minced words about his feelings towards the Fed chair. Powell has frequently been the butt of Trump’s jokes and insults. The president turned it up a notch, when just last week, he personally toured the Fed headquarters and publicly scolded the 72-year-old former lawyer and investment banker for mismanaging a $2.5 billion renovation of the central bank’s buildings.
The CME FedWatch Tool predicts, with a 97% probability, that the Fed will hold rates steady after its FOMC meeting which concludes Wednesday afternoon.
