The Federal Reserve is expected to maintain its key short-term interest rate this week, despite pressure from President Donald Trump to reduce borrowing costs. Trump has criticized the Fed and suggested firing Chair Jerome Powell, though he later retracted this statement. Trump and Treasury Secretary Scott Bessent argue that lower inflation rates justify a rate cut. However, the Fed increased rates significantly in 2022 and 2023 to combat pandemic-era inflation. Economists suggest the Fed may delay rate cuts due to concerns about political influence and the impact of tariffs on inflation. The central bank aims to assess how tariffs affect the economy before making any moves. Inflation dropped in March but remains above the Fed’s 2% target. Some economists predict the Fed won’t cut rates until September or later, depending on economic data. \n— new from PBS
