The Federal Reserve is expected to hold interest rates steady at the end of its two-day meeting this week, despite political pressure to make cuts.
The Fed last lowered interest rates in December, bringing its benchmark short-term rate to a range of 4.25% to 4.5%. Since then, the central bank has kept rates flat amid uncertainty on how tariffs will impact inflation and the economy. If rates remain unchanged Wednesday, it would be the Fed’s fourth consecutive meeting without cuts.
Helmed by Chair Jerome Powell, the Fed has stuck to its wait-and-see approach despite President Donald Trump’s calls for cuts. Trump on June 4 took to Truth Social to say that Powell was “unbelievable!!!” and “must now LOWER THE RATE.”
Powell has said the Fed is comfortable with its policy stance.
“We think right now the appropriate thing to do is to wait and see how things evolve. There’s so much uncertainty,” Powell said at a May 7 press conference.
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Can Trump fire Powell?
Trump has repeatedly lashed out at Powell as he pressures the Fed chair to cut interest rates. In April, Trump said the Fed chair would be “out of there real fast” if we wanted him gone.
But the president has also said he has no plans to fire Powell.
“I have no intention of firing him,” Trump said on April 22. “I would like to see him being a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates.”
Legally, Trump would have trouble firing the Fed chair. In May, a Supreme Court ruling eased concerns over Trump’s ability to fire Powell, noting that the Fed is “a uniquely structured, quasi-private entity” and unlike other independent agencies with members subject to terminations decided by the president.
Powell was appointed chair during the first Trump administration and was reappointed in 2022 under Biden. His term is set to end in May 2026.
– Bailey Schulz
This article originally appeared on USA TODAY: Is the Fed cutting interest rates this month? Live updates
