The Federal Reserve is expected to hold interest rates steady at its next meeting as it assesses the impact of previous rate cuts. Fed Chair Jerome Powell may face questions about President Trump’s push for lower rates, with most officials hesitant to make further cuts.

Markets anticipate a rate pause, with a 97% chance Fed will keep rates unchanged. Inflation above target and hiring slowdown pose challenges. Only Governor Miran advocates for steep cuts. Powell expected to uphold independence amid White House pressure, setting a higher bar for future rate cuts.

While financial markets expect a rate pause, Powell may address Trump’s pressure at the post-meeting press conference. White House legal actions against Powell and Fed Governor Lisa Cook criticized as attempts to influence rate policy. Powell’s independence crucial for public trust in Fed’s economic decisions.

The Fed’s ability to control inflation relies on public perception of setting rates based on economics, not politics. Powell condemned White House’s actions as intimidation, breaking with precedent. Experts stress the importance of Fed independence to maintain trust in monetary policy decision-making process.

Read more at Yahoo Finance: The Fed Is Unlikely to Make Moves Next Week, But There Could Still Be Drama