US EditionFed expected to keep rates unchanged as Chair Powell pivots back to economics
- On Wednesday, Federal Reserve Chair Jerome Powell will face markets as the Federal Reserve is expected to hold rates after three quarter-point cuts last year, with CME's FedWatch futures pricing a 96% chance of a hold at 3.5%-3.75%.
- Earlier this month, the U.S. Department of Justice subpoenaed the Fed in a probe tied to Powell's testimony about a $2.5 billion building renovation, and Powell said Jan. 11 the subpoenas were `pretexts` to punish the Fed.
- President Trump recently told aides to buy $200 billion in mortgage bonds and issued an executive order limiting large institutional investors, which could front-load demand and boost housing inflation, though Allianz Investment Management said the impact may be limited.
- A hawkish pause would flag lingering inflation risks, denting rate-cut bets and pressuring risk assets lower, potentially lifting the U.S. dollar against low-yield currencies.
- Stephen Miran, Trump's Fed appointee, is expected to dissent for a 50-basis-point cut, and many economists expect growth could pick up in the coming months, reducing calls for easing.
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87 Articles
Hong Kong follows the US to keep interest rate unchanged
Hong Kong’s de facto central bank left its base rate unchanged after a similar move overnight by the US Federal Reserve, leaving borrowers in the city with a longer wait for funding costs to fall. The Hong Kong Monetary Authority (HKMA) announced its decision on Thursday morning to keep the city’s base rate at 4 per cent. Hours earlier, the Fed also kept its target rate in the range of 3.5 per cent to 3.75 per cent, after the first meeting of th…
Washington and Madrid. Federal Reserve President Jerome Powell said Wednesday that the case before the Supreme Court about Donald Trump’s attempt to remove a governor from the central bank could be the most important legal challenge facing the institution. “I would say that case is perhaps the most important in the Fed’s 113-year history,” Powell said on Wednesday, answering a question about why he attended the January 21 hearing around Trump’s …
Powell warns Lisa Cook's Supreme Court case could be most consequential legal threat in Fed’s history
Fed Chair Jerome Powell calls Supreme Court case involving Lisa Cook "perhaps the most important legal case in the Fed's 113-year history" as President Donald Trump seeks her removal.
The U.S. Federal Reserve Chief had opposed the investigation of the Department of Justice to an unusual degree. Now Powell decides once again on the interest rate.
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