Economists fear the U.S. Federal Reserve’s independence is at risk due to political interference. President Trump criticizes Fed Chair Powell’s reluctance to cut rates, citing inflation risks from tariffs. Some Fed members advocate for a rate cut in July, while others prefer to hold steady. Powell’s term lasts until 2026.

A majority of economists express concern over the Fed’s independence from political influence. Powell’s cautious approach to rate cuts reflects the current Fed’s stance. Economists predict the Fed will maintain rates at its upcoming meeting, with a slight majority expecting a cut in September. Uncertainty remains over future rate decisions.

Economists anticipate one or two rate cuts this year, with interest rate futures pricing in two reductions. Inflation forecasts remain steady above the Fed’s 2% target. Trump’s spending bill may add to the national debt, potentially sparking inflation. Economic growth is projected to slow to 1.5% this year and 1.6% next year.

Read more at Yahoo Finance: US Fed independence under threat, say economists, but no one expects a July rate cut- Reuters poll