Fed Faces First Interest Rate Decision Under New Trump Administration
The Federal Reserve is expected to maintain current interest rates at its first policy meeting since Donald Trump's return to office. The decision, due Wednesday at 2 p.m. ET, comes amid recent statements from President Trump advocating for lower rates. Speaking at the World Economic Forum in Davos via video call, Trump expressed his intention to push for immediate rate reductions, both domestically and internationally. His comments continue a pattern of publicly discussing monetary policy, breaking from the traditional presidential practice of maintaining distance from Fed decisions. The economic landscape has shifted significantly since Trump's previous term ended in 2021. Current indicators show inflation at 2.9% as of December, above the Fed's 2% target but considerably lower than during the post-pandemic period. The job market remains resilient, with unemployment at 4.1% in December, while consumer spending continues to show strength. […]