Federal Reserve policy decisions, interest rate changes, FOMC meetings, monetary policy analysis, and impact on the U.S. economy and financial markets.
President Trump stated in an exclusive Meet the Press interview that he does not want to influence Federal Reserve Chair Kevin Warsh's decisions on interest rates, saying he wants Warsh to do whatever he wants. Trump also reiterated his call for a rate cut, arguing the economy should not be penalized by rate hikes.
Goldman Sachs reversed its forecast for a Federal Reserve rate cut in 2026, citing stronger-than-expected U.S. employment data. Chief economist David Mericle announced the change in a note published Friday, pushing back the timeline for final cuts to 2027.
Federal Reserve Governor Michael Barr criticized recent moves to relax rules for US lenders, warning they will undermine bank safety and increase financial stability risks. He said vulnerabilities may not be apparent now but could build over years and threaten serious harm to the economy.
This commentary argues that the Federal Reserve has limited control over US mortgage rates, which are driven more by long-term inflation expectations and market forces. It contends that despite Fed rate cuts, mortgage rates remain high due to investor uncertainty about inflation, and suggests Americans may face elevated rates for an extended period.
Cleveland Fed President Beth Hammack said if recent economic trends persist, it may soon be appropriate to act on the policy rate. She noted it is currently reasonable to keep rates steady. The Fed's inflation target is 2%.
This commentary argues that incoming Federal Reserve Chairman Kevin Warsh faces a difficult position between President Trump's demands for rate cuts and rising inflation signals from the bond market. It contends that Warsh risks being seen as a political puppet if he cuts rates aggressively, and that the bond market, not the government, controls long-term interest rates.