euronews.com
Fed to Cut Rates Amid Trump Uncertainty
The Federal Reserve is poised to cut interest rates amid economic uncertainty and the potential for inflationary pressures under the Trump administration.
English
United States
PoliticsEconomyUs PoliticsInflationInterest RatesFederal Reserve
Federal ReserveGoldman Sachs
Donald TrumpJerome Powell
- What is the Federal Reserve expected to do this week?
- The Federal Reserve is expected to cut interest rates again this week, but the election of Donald Trump introduces uncertainty.
- How could Trump's election affect the Fed's independence?
- The Fed's independence is threatened by Trump's past criticisms and his suggestion that he should influence rate decisions.
- What are some conflicting signals from the current economic state?
- While the economy shows some positive indicators like solid growth and healthy consumer spending, there are concerns about weakening hiring and the impact of rising Treasury yields.
- What is the central challenge the Fed faces in making its decisions?
- The conflicting signals from the economy and the market's anticipation of higher inflation under Trump create a challenge for the Fed in determining its future monetary policy.
- What is the major source of uncertainty regarding the Fed's actions?
- Trump's economic proposals, including potential tariffs and tax increases, could be inflationary, making further rate cuts less likely.