Fed Expected to Hold Rates Steady Amid Political Pressure
The Federal Reserve is poised to maintain interest rates at 3.5%-3.75% during Wednesday's meeting, marking a pause after three consecutive cuts. Market consensus, reflected in a 97% probability via CME Group's FedWatch tool, anticipates no immediate changes as policymakers assess the impact of previous easing measures.
Chair Jerome Powell faces heightened scrutiny over the central bank's independence following public demands from President TRUMP for lower rates. The Fed's dual mandate—balancing inflation control with economic growth—remains central to its wait-and-see approach, with officials signaling reluctance toward further adjustments in the near term.