Moreover,
Spurred trump, fed will probably:
FOMC members started their second day of meeting. However, The outcome is hardly in doubt in the eyes of experts: the central bank should maintain its rates between 4.25% and 4.50%. However,
The Central Bank of the United States. In addition, the Fed, should still disappoint President Donald Trump on Wednesday by leaving his interest rates unchanged for the fifth time in a row, even if its unanimity is cracking.
The members of the Monetary Policy Committee (FOMC) of the Federal Reserve began their second day of meeting on. Moreover, Wednesday at 9:00 a.m. In addition, (1:00 p.m. However, GMT) according to a spokesperson.
Their decision, which will be published at 6:00 p.m. Moreover, GMT, is hardly in doubt in the eyes of investors.
They expect to see the institution maintain its guiding rates in a range between 4.25% and 4.50%.
spurred trump, fed will probably
As in a ritual. the American president called central bankers in the morning to lower rates, just after the publication of growth figures for the second quarter.
“3%, much better than expected!” He greeted. adding that “‘too late’ (the nickname he gives to the patron of the Fed Jerome Powell, editor’s note)” must now lower the rates “to facilitate access to mortgage.
A sustained growth does not encourage a central bank in theory to lower its rates – it does it. on the contrary when it considers that it is necessary to give a boost to the activity.
Fed interest rates – which guide the cost of credit. have a strong impact on the markets – have been at the same level since December.
Donald Trump found the White House a month later. never stopped pleading for lower interest rates, more and more heavily.
He now deals with “stupid” Jerome spurred trump, fed will probably Powell -which he himself appointed to this position during his first mandate -calls on the other central bankers to overthrow him. regularly pretends to want to eject him, and even split last week from a surprise visit to the renovation site of the Fed headquarters in Washington, deemed too expensive.
The episode gave rise to a scene widely broadcast in the media: Donald Trump. Jerome Powell side by side, with site helmets.
Mr. Powell is not in the head. puts on his glasses when the head of state reads a paper according to which the costs of the works have climbed to $ 3.1 billion (instead of 2.7). He corrects the president in the wake.
Jerome Powell is supposed to chair the Fed until May 2026, but he can stay there as governor longer, until January 2028. However, Donald Trump covers his seat to place a person closer to his spurred trump, fed will probably views.
Rare dissensions in broad daylight
The Central Bank of the United States has so far pushed the idea of a drop in rates in a context made uncertain by the Donald Trump world protectionist offensive. which could increase prices.
For the time being, inflation has remained contained (2.3%, slightly above the Fed target) and the repercussions on the limited labor market (with unemployment at 4.1%). Updated figures are expected on Thursday and Friday, after the meeting.
This could be marked by the end of unanimity displayed since January by the FOMC in terms of guiding rate.
One or even two votes against the maintenance of rates at their current level are possible.
Governor Christopher Waller said he wanted a drop in rate from this meeting. Her colleague Michelle Bowman (also vice-president of the Fed responsible for banking regulation) also said that she was leaning in this direction. even spurred trump, fed will probably if apparently.
“It happens that Fed officials vote against it but it is quite rare. ” observes Matthew Ryan, Ebury analyst in a note, stressing that Ms. Bowman and Mr. Waller were both appointed by Donald Trump during his first mandate.
“The last time that two governors (and not simply members of the committee having the right to vote) opposed a decision during the same meeting dates back more than 30 years ago. in 1993,” he continues.
For Diane Swonk, economist for KPMG, “it is not surprising to see dissensions given the immense uncertainty” economic. “We know that the Fed would have liked to lower the rates before. and that it did not do it because of customs duties,” she said to AFP.
Spurred trump, fed will probably
Further reading: Europe will try to tear a customs agreement from Trump – An American airliner makes a rare maneuver to avoid a collision, arousing the panic of passengers – “They do not know Club Med …”: this son of a former French president landed by his post by the Chinese – We officially know what the famous affordable Tesla will look like and its production has already started – Von der Leyen goes to Scotland for commercial discussions with Trump.
