Is the Federal Reserve about to cave to Trump's demand to cut interest rates?
WASHINGTON - President Donald Trump has been hectoring the Federal Reserve to lower interest rates, and financial markets are screaming for a cut. This even though rates are historically low and the economy is sailing along, albeit with some recent gray clouds.
What's a central bank to do?
Fed policymakers are expected to stand pat on rates after their two-day meeting Wednesday. But it looks as if they already may have backed themselves into a corner.
In recent weeks the Fed and its chairman, Jerome Powell, have signaled they're prepared to lower rates if the outlook worsens. Just three months ago they were favoring a rate hike or no action.
Failure now to cut rates - or a pivot back
