Fed likely to keep rates steady despite Trump's calls for cuts, market predicts chance of cut in June

From Investing.com: 2025-04-24 08:10:00

President Trump insists he won’t fire Federal Reserve Chairman Powell, but continues to push for rate cuts. Fed expected to keep rates steady at next meeting, despite Trump’s calls for cuts. Market predicts 94% chance of no change in May, 59% chance of cut in June. 2-year yield falls, indicating expectation of cuts. Fed hesitant to ease until sure inflation spike is temporary, despite polls showing rising inflation expectations. Retail CEOs warn tariffs could raise prices, as US economy shows signs of slowing. Powell waiting for more clarity on economic changes before making decisions. Uncertain if growth slowdown or tariff-driven inflation will dominate economic landscape. Possibility of stagflation could maintain status quo for Fed and President.



Read more at Investing.com: Fed Expected to Keep Rates Steady Despite Trump’s Calls for Cuts