The Federal Reserve and its Chairman, Jerome Powell, are under increasing pressure from President Trump Donald John Trumpet quotes tax cuts for judges as having the biggest impact of his presidency Trump quotes tax cuts over judges as the Larger Occasio-Cortes returns to Trump after citing it as a tweet, rejecting the impeachment. and Wall Street to cut interest rates. and the recent signs of delays in key economic data have made investors worry. And Trump increases pressure on his chosen chairman, seeking Fed's help when he tries to end the trade war with China ̵
Powell and senior Fed officials hinted at a downgrade prices earlier this month, and Trump may soon get his wish. The Federal Reserve will forecast its plans on Wednesday at the end of the two-day meeting of politicians. And while Fed is unlikely to cut prices this month, he is expected to design at least one future cut.
But this is unlikely to appease the Fed's observers. Powell will go on a tight road with Trump and the markets are eager to wait for the time to cut interest rates and how aggressive this decline will be.
The question of how to move interest rates is just one of the few challenges faced by the Fed. intense political pressure and uncertain economic forecasting.
"The Federal Reserve must fight not only with all the uncertainty of the market due to commercial battles but also with unprecedented political risk," said Karen Shaw Petru, Managing Partner
The Fed meeting minutes on Wednesday will also give important tips on how the bank considers the risk of Trump's commercial wars and other economic warning signs.
The Federal Reserve would not want a potential interest rate to be reduced to being seen as a president's rebate and rescue for the market, "Petru added. "This is not a convenient place for the central bank."
Trump rises above every decision. The president struck Powell with unprecedented public pressure for nearly a year after the central bank tried to unleash the recovery from the recession in 2008 while preparing for the next downturn.
While the Central Bank is independent of the White House, the Federal Reserve has been operating under Trump's shadow since Powell was confirmed as President in February 2018, opposing and angering the president on the way.
In an interview with ABC News, broadcast on Friday, Trump again struck the Fed and said he "waited long enough. "For the bank to reduce interest rates."
"I totally disagree with him," Trump told Powell, claiming that the economy and the stock market would increase faster "if we had a different person in the Federal Reserve,
Despite Trump's warning to maintain stable interest rates, the Federal Reserve raised interest rates to prevent inflation inflation seven times during its presidency, including four teams
But the Federal Reserve withdrew after a winter market that rocked Wall Street and an economic downturn, excluding interest rates rises rates in the foreseeable future
Inflation has also remained steady under the Fed's target range
Fed processing by the Federal Reserve has provoked criticism
"They pretty much misunderstand the inflationary pressures they perceive last year," he said Daniel Alpert, Managing Partner Investment Firm, Westwood Capital, "This leaves us with the level of inflation that is really low and does not justify the increase in 2018"
Fed representatives are now concerned about low inflation, that they can soon take action after months of patience.
Powell said in a speech earlier this month that the Fed "will act appropriately to support enlargement," which Wall Street saw as a hint of future interest rate cuts.
Trump threatens to impose $ 300 billion more in Chinese commodities also contributes to the complex economic picture that the central bank has to manage
Trump's tariffs threaten to raise prices for hundreds of basic commodities, while counter- Beijing could mean strong pain for the sick agricultural sector. Chinese commodity tariffs and related costs could seriously slow the US economy, according to economists, and potentially trigger a recession.
But Tim Dui, a professor of economics at Oregon University, said in a Monday notice that consumer and production consumption could be expected to "hint that the economy is not near the recession and will give ammunition of the crowd, "he added.
Dui said he still expects the Fed to "open the door for interest rate cuts in July," after the economy added just 76,000 jobs in May while inflation remained low
. need more data to justify a reduction in interest rates, "Diu writes. "Another report on posts in line with the May report will continue to support this decline in July."
Delaying interest rate cuts will probably boost Powell's pressure.
Publicly, Powell dismissed the President's criticism and promised that the central bank would remain independent.
At the Fed's political conference earlier this month, Powell tried to calm the markets that the bank was "watching closely" the consequences of Trump's tariffs.
The Federal Reserve also faces fears that lowering interest rates can now prevent the bank from responding effectively to the next delay or crisis. With a base interest rate of 2.25% to 2.5%, the Federal Reserve has little room for reduction if the economy needs stimulus through cheaper money.
"They do not have many tools in the set," Petru said, highlighting how the Federal Reserve was in a challenging place. "This is in the middle I'm trying to figure out how to do better and at the same time face a political attack."