Fed expected to hold interest rates steady, defying Trump

The Federal Reserve is expected to maintain interest rates between 4.25% and 4.5% amid pressure from President Trump for lower borrowing costs and uncertainty surrounding his tariffs. Despite strong job growth and a recent GDP decline of 0.3%, Powell emphasizes a cautious approach while evaluating the economic impact of tariffs. The Fed’s decision follows Trump’s tariffs and a subsequent market fluctuation, highlighting ongoing risks of stagflation and recession as trade negotiations continue.