The Federal Reserve will announce its decision on interest rates, and although there is not much uncertainty and drastic measures are unlikely, Powell may try to refocus the market's attention on the economy. The Federal Reserve is expected to keep interest rates unchanged after three consecutive cuts.
Therefore, the press conference will inevitably address issues related to political pressure, the independence of the central bank, and Powell's plans after his term ends in May. The decision to keep interest rates unchanged this month will likely have broad support from decision-makers.
Investors will closely analyze Powell's words for hints about how long policymakers expect to keep interest rates unchanged. Additionally, Trump's attempt to remove Federal Reserve Governor Jerome Powell, accusing him of mortgage fraud, was presented last week to the Supreme Court of the United States, and Jerome Powell's term, appointed by Trump, will end next Saturday.
But many officials who previously supported lowering interest rates may feel comfortable with the decision to keep them unchanged. Notably, in June of last year, the first decision-maker who openly favored lowering interest rates, advisor Waller, said he saw no "rush" to do so, given that inflation remained above target.
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