The Federal Reserve has so far resisted Donald Trump’s aggressive pressure campaign to throw inflation concerns out and attempt to boost the U.S. economy with lower interest rates.

That’s expected to continue Wednesday, as the central bank is expected to leave interest rates unchanged. If so, that’s likely to annoy Trump, who is already reshaping the global economy with his tariffs.

The Fed’s rate setting committee began its two-day meeting Tuesday. Market projections and analysts expect it won’t cut its key rate.

  • r0ertel@lemmy.world
    link
    fedilink
    English
    arrow-up
    36
    ·
    3 days ago

    It’s important to remember that Powell himself does not set the rates, it’s decided by a committee which he is currently the chair of. I feel like this fact is absent from much of the news I read/hear surrounding Powell & Fed interest rates.

    From MSN:

    Powell chairs the central bank’s eight annual meetings. But the other 11 voting members of the Federal Open Market Committee, or FOMC, get an equal say on each Fed rate decision via a majority vote.

    Also important:

    the Fed’s four no-cut calls so far this year have been unanimous.

    I realize that the chair is an important role, but am I missing something that replacing 1 person would change the interest rate voting outcome?

    • fafferlicious@lemmy.world
      link
      fedilink
      English
      arrow-up
      18
      ·
      3 days ago

      While that’s correct, I think you’re ignoring how much sway a figurehead can hold.

      Also it’s important to keep in mind, that the childfucker-in-chief may just classify the committee as political appointees and fire them (See Project 2025 and Schedule F). Legality doesn’t matter.

      He wrote an executive order clearly in violation of the Constitution to remove birthright citizenship, and the Supreme Court said “the real unconstitutionality is nationwide blocks.”

      • r0ertel@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        ·
        2 days ago

        I was about to argue and then read “legality doesn’t matter”. You’re right.