The US Federal Reserve is likely to hold interest rates steady when it meets today — a move that comes at a fraught moment both economically and politically.
The central bank faces a balancing act: Analysts are concerned that inflation may accelerate, but data still shows a relatively healthy economy. Economists expect lower borrowing costs in the autumn. The politics of the decision are significant, with President Donald Trump persistently calling for rate cuts and the White House pressuring the Fed over cost overruns surrounding a renovation project.
Several Republicans worry about Trump’s pressure campaign, but, as Semafor’s Principals team noted, “This is Trump’s party, through and through,” so “none of them will say openly that the president should stop pushing.”
