Federal Reserve likely to stand pat on rates this week
The Federal Reserve is expected to keep interest rates unchanged for the fifth straight meeting, highlighting a growing divide between Chair Jerome Powell and President Donald Trump.
Trump is pushing for deep rate cuts, arguing they’re needed despite a strong economy, while Fed officials believe higher rates are appropriate to prevent inflation.
The Fed has signaled limited cuts this year, while Trump wants rates slashed to 1%.
Two Trump-appointed Fed governors may dissent in favor of a rate cut, the first such split since 1993.
Inflation has recently ticked up, leading officials to remain cautious.
Trump has also attacked Powell over Fed building costs, raising questions about future clashes, ABC News has reported.
Most economists expect a rate cut in September, not July.
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