Fed's Powell has had no contact with Trump after president said he'll demand rates drop
Published On Jan 29, 2025, 2:41 PM
Federal Reserve Chair Jerome Powell has stated that he has had no communication with President Trump following Trump's comments demanding immediate cuts to interest rates. Powell emphasized the independence of the Federal Reserve in making decisions about interest rates, particularly against external pressures from political figures. Amidst ongoing inflation concerns, which remain above the Fed's 2% target, the central bank decided to keep rates steady for now.
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The situation signals potential volatility in the financial markets as political influences on interest rate decisions are scrutinized. Investors may be wary of potential political maneuvers affecting the Fed's operational independence, which can have significant implications for market stability and investor sentiment.
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