Federal Reserve will probably maintain Wednesday without changes to its short -term interest rate, Despite the criticism and the president’s demands Donald Trump to the Central Bank to reduce owed costs.
He said that after a strong decline in the financial markets two weeks ago, I can say goodbye to Central Bank President Jerome PowellTrump then turned upside down and said he had no intention of doing so. In spite of that, he and the Treasury SecretaryThey said Scott Bescent should cut down the central bank varieties.
They argue that Inflation is constantly refrigerated And the highest costs of loans are no longer required to control the increase in prices. Central Bank suddenly rose its type in the short term Inflation of the era of infections in 2022 and 2023.
Separately, Elon MuskTrump’s head of government performance department, Suggested that the Toj should be tested last Wednesday The cost of the central bank is very close to its facilities. The biggest study shows even when there is administration Trump threatens to set fire to Pawal, although the central bank is an independent company, is subject to political pressure.
The central bank is likely to be sure this week
Even so, it is almost certain Central Bank will leave its main rate without 4.3% changes While meeting Tuesday and Wednesday. Several 18 officials sitting on the Powell and Central Bank Rate Committee have said this How do they want to see Trump’s fees They affect the economy before doing any movement. However, Trump said in the social media site on Friday in the real community Said “no inflation” and said the prices of goods that could be eaten Eggs have fallen, and the gasoline gallon 98 has declined to 1.98 (1.8 euros).
It is not completely true: the prices of groceries have risen by 0.5% in the last three months to 2.4% per year. The prices of petrol and oil have fallen. However, the average price of gasoline across the country is 11 3.18 (2.8 euros) gallon.
Inflation landed significantly in MarchA stimulating signal, which was 3.6%in the first trimester of the year, according to the Federal Reserve Favorite Indicator, and its 2%target.
Charges are likely to delay type cuts
There are no charges, Economists say that the Federal Reserve is likely to soon reduce its interest rate Note, because it currently owes and is at a level to stop the cost and cold inflation. However, the central bank cannot now reduce the types of widespread Trump fees that raise prices in the coming months.
Vincent Rainheart, the chief economist of the BNU, said the central bank was “marked” for what happened in 2021, due to supply and supply issues rising due to issuance and supply issues. Powell and other central authorities said Increase will probably be “medieval”. Instead, inflation shot up a maximum of 9.1% in June 2022.
They will be very cautious at this time. “This is a central bank, it has to wait for the evidence and it must be slow to adjust about those sources,” said RainHart. Besides, Trump’s harassment for Pawal makes him very difficult US employment economist Preston MII said that the central bank’s presidential rates should be reduced, because it will soon be seen as to how to do so at any time before the White House.
“You can imagine The world with no pressureBy administration Cut the Trump and Types … Before that, they are convenient in arguing that they are doing it because of the data, “he said. He said that last month’s fees will increase inflation and slow the economy, which is a subtle combination of the central bank.
Central Bank usually raises the types, or at least keep them tall, To fight inflationIf unemployment increases, they will reduce them to stimulate the economy.
Powell has said that the impact of the fees on inflation is temporary and a time -priced increase, but recently he said, “This may be more perseverance.” It suggests that Powell will want to waitMonths possible, To ensure that fees do not increase inflation Long before considering a type of cut.
Fed type cuts may take a few more months
Some economists predicted that Central Bank does not cut category Until its September meeting, or later. However, central bank officials can act before this If the fees are affected by the insufficient economy for the dismissal And increase unemployment. Wall Street investors expect this to happen, and expect the first cut in July in accordance with the prices of the future.
Besides, Federal Reserve Mask criticized Wednesday To spend 2.5 billion dollars (2.2 billion euros) to renovate its two buildings in Washington DC “After all, these are the money of the taxpayerWe need to check whether the Federal Reserve spends $ 2.5 billion for its interior designer, “Mask said. That means raising your eyebrows. “
Federal Reserve authorities recognize it The price for reconstruction has risenBecause of the post -infection of the infection and the prices of the labor products were triggered. And former central authorities say that the local regulations that spoke in the background were forced by the Central Bank Underground most of the expansionInstead of building the highest buildings, it increased the cost.
Meanwhile, Kevin Warsh, the former governor of the central bank and the potential candidate to become president of Pavalai, recently said when the order expired next year. Central Bank has attracted greater studies Due to the inability to maintain prices in control.
“Central Bank’s current injuries are often self -suffered,” he said in a speech During the International Monetary Fund Conference At the end of April, he tapped the central bank for participating in the World Forum on Climate Change. “Strategic reset is essential To alleviate reliability losses, level changes and, most importantly, bad economic results for our fellow citizens. “
PowellOn the other hand, “The central bank said last month that the freedom of the Bank was very widespread Understanding and supported in the Congress in Washington, where it is really important. “