Trump urges Washington ahead of Fed meetings
The news focused on the pressures from the Trump administration on the Federal Reserve to prevent interest rate hikes during the September meeting, as the President, his deputies, and senior officials urged the central bank not to raise rates, and in some cases, called for cuts. This was an attempt to avoid inflationary effects and reduce borrowing costs. Washington also threatened to halt trade with countries that achieve trade surpluses with the United States if the Fed does not lower interest rates. This is an unusual stance and was topped by strongly worded statements from some advisors. These pressures came at a time when forecasts indicate a 60% chance of a rate hike at the upcoming meeting before the midterm elections, despite the Federal Reserve emphasizing its independence and stating that any decision to raise or lower rates depends on economic data, particularly inflation and growth indicators. Markets are closely watching the upcoming Consumer Price Index report, which will determine how persistent inflation is, amid ongoing debate between inflationary or deflationary scenarios linked to administration policies.
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