The Federal Reserve is set to announce if it will adjust its benchmark interest rate on Wednesday, with President Donald Trump pushing for a rate cut.
Trump renewed his call for interest rate cuts in a speech at the World Economic Forum on Jan. 21, during which he also mocked Federal Reserve Chair Jerome Powell as “too late” for not lowering the benchmark rate sooner.
While the Fed has enacted three 25 basis point cuts since September, Trump has argued the central bank waited too long to begin cutting rates and is now moving too cautiously.
However, the Fed is unlikely to adjust rates in the coming months — as of Tuesday afternoon, there’s about a 72% chance that the Fed’s benchmark rate holds steady through most of April, according to the CME FedWatch tool, which tracks market expectations based on futures pricing.
The Fed’s rate-setting committee is expected to keep its benchmark federal funds rate unchanged at 3.50% to 3.75% on Wednesday, per the CME FedWatch tool, a decision that influences mortgage rates, credit cards and loans.
