Jerome Powell, chairman of the US Federal Reserve, will give a lecture at a press conference after the Financial Policy Committee meeting held in Washington DC on December 18, 2024.
Andrew Caballero-Reynolds | AFP | Getty Image
The federal preparation system will be gathered for the first time this week in the second President of Donald Trump. He indicates that he already wants a low interest rate.
If all of the signs are virtually accurate, the new leader in the free world may continue to hold the FRB at least this year, at least, comparing multiple variables that may make policy decisions difficult. Because it is expensive, you rarely get something you don’t want yet. 。
“They will probably take the backseat,” said Beth Ann Bovino, Chief Economist of the United States. “No one knows what to expect from the White House. The policy movement is still very unclear, but I know that many of the proposals spoken in the White House are a bit inflation. The Fed is a check.
In fact, according to CME Group data, the market price setting pointed out 100 % of the certainty of the Federal Open Market Committee to keep the Central Bank policy rates in a target range of 4.25 % to 4.5 %.
In fact, traders believe that they are holding the Fed until June. This is a highly likely period of Trump tariffs, regulations, and immigration plans more clearly. Trump said on Thursday that he demanded that interest rates will fall soon, but he has no authority to make the Fed’s decision.
The Fed has reduced the price in each of the past three conferences and reduced the short -term borrowing rate. The price decision will be released at 2:00 pm on Wednesday.
Despite the pressure of the White House, the Central Banking family should be well maintained and take a break from policy change, said former Dallas child Robert Couplan.
“It’s an appropriate call to stay stable. Inflation’s progress may not have stalled, but it is facing sideways, and four or five large structural changes are underway. We are trying to expand, “said the Goldman Sachs Executive Couplan, now CNBC interview. “The right thing is to do nothing at this meeting.”
Caplan is to reduce government expenditures, regulates regulations from the newly built advisory committee, called the government’s efficiency, and to make the Sector’s construction more efficient, with the Trump “Drill Baby Dream” approach. The expected efforts have been quoted for government expenditures, government expenditures, and regulations. 。
In inflation, Calan believes that tariffs are likely to raise prices, but large amounts of overseas expenditures that have begun seriously this week can reduce labor costs.
“Trump clearly wants them to speed up their analysis, speed up these new policies, and act faster than they are comfortable,” said Kaplan. “In this case, the work of the Fed people is to analyze and do not act until you are confident.”
This conference is not a feature of the Fed’s quarterly economic prediction, including the estimated “dot plot” for individual members regarding places where interest rates are heading. In the December meeting, the participants assumed that the expected rates cuts were reduced from the previous four to two to two, and each cut would be a quarter of the number of points.
Investors are expected to change most through post meeting statements. After that, at 2:30 pm, you will rely on Jerome Powell’s press conference.
Powell had a relationship with Trump during the first round of the president’s elliptical office from 2017 to 2021.
“The Fed must follow legislative orders,” said Kansas City’s former FRB President Esther George in an interview on Friday. “Congress says that it is to raise the price to a low and stable level. In the long term, this institution must consider the purpose of those purposes, not with external commentary or political pressure. The whole existence.
