Fed Expected to Maintain Interest Rates Amid Trump Tariff Pressure

The Federal Reserve is widely expected to keep interest rates unchanged for the fourth consecutive meeting as it assesses the economic impact of President Donald Trump's aggressive tariff policies. While inflation has approached the Fed's 2% target following a previous peak above 9%, uncertainty about the tariffs' effects on inflation and growth has prompted officials to delay any rate cuts. President Trump has repeatedly pressured the Fed to lower rates immediately, even meeting with Chair Jerome Powell and threatening to force action, but the Fed has emphasized its independence and the need for clearer economic data. Economists note that the full impact of tariffs on consumer prices may take several months to materialize, and current signs show muted inflation and some cooling in the labor market. The Fed's cautious stance reflects concerns that premature rate cuts could undermine confidence in its ability to control inflation, especially given the political pressure from the White House. Market watchers will closely analyze Powell's comments for indications of possible rate cuts later in the year, though most expect any easing to be delayed until at least autumn.