inflation, Federal Reserve
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WASHINGTON (TNND) — President Donald Trump is once again putting public pressure on Federal Reserve Chair Jerome Powell, calling for interest rate cuts amid signs of a cooling labor market. But while rate cuts have been projected for months, the Fed hasn’t moved since December of 2024, and Powell doesn’t seem ready to cave just yet.
Headwinds for mortgage rates arrived Tuesday in the form of rising inflation, which likely ends the faint hopes of a Fed rate cut in July.
Trump urged the Federal Reserve to lower interest rates to 1%, but economists argue this could backfire, risking inflation & undermining the Fed's credibility.
The central bank remains cautious, even as calls for rate cuts grow louder from the White House and other policymakers.