Trump official criticizes Fed chief Powell
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The newly published meeting minutes highlighted a divide over how Federal Reserve officials expect the economy to respond to President Donald Trump's tariffs.
The right to freedom of speech allows Trump to make demands of the Fed to his heart's content. But legally, he cannot compel the central bank to lower its benchmark interest rate. The Fed has the right to act independently, and its aim is to promote a healthy and stable economy by keeping inflation in check.
1don MSN
Federal Reserve Governor Chris Waller said on Thursday said he favors cutting the Fed's policy rate in July. He also discussed the Fed's balance sheet and why it should continue to pay interest on bank reserves.
Trump hopes to get lower rates by replacing Fed Chair Jerome Powell with someone who would do what the president wants. But Powell’s term as chair does not end until May 2026. He’s insisted he won’t resign early.
Historically high interest rates and falling late-payment rates suggest that credit card issuers are tightening their underwriting standards amid economic uncertainty.
The Fed's Bernanke-era quantitative approach has provided steady economic growth. Click here to find out what remains central to the Fed's strategy.
Fannie Mae now expects rates around 6.5% by the end of 2025 and 6.1% by the end of 2026.
Recent national and global surveys of business executives have highlighted the U.S. Federal Reserve's dilemma in determining if slowing growth or inflation is the greater risk to the U.S. economy, with interest rate decisions hinging on how policymakers reconcile conflicting information in a still volatile trade environment.