The Fed Faces Economic Uncertainty and Political Pressure as It Decides Whether to Cut Rates
The Federal Reserve plans a 0.25% rate cut to address a weakening labor market and recession risks amid political pressure from President Trump, with inflation still above 2%, analysts say.
- The Fed is widely expected to reduce rates for the first time this year, having held rates between 4.25% and 4.5% since December as policymakers monitored the effects of Trump's tariffs on inflation.
- Political tensions around the Fed's rate-setting committee and central bank independence add high drama despite markets largely anticipating a rate cut, with traders monitoring Fed Chair Powell's remarks on inflation risks.
200 Articles
200 Articles
Fed expected to cut rates for first time in 2025 amid Trump pressure
The Federal Reserve is expected to announce its first interest rate cut this year on Wednesday despite signs of tariffs pushing inflation higher amid rising concerns about the labor market.Policymakers on the Federal Open Market Committee (FOMC) are expected to cut the benchmark federal funds rate by 25 basis points, the first since December 2024, which would lower the target range to 4% to 4.25%.Markets have priced in a cut, with the CME FedWat…
Will the Fed cut rates this week? These charts may determine its decision.
September 16, 2025 / 5:00 AM EDT / CBS News The Federal Reserve’s rate decision on Wednesday is shaping up to be its most consequential of the year, with most economists predicting the first cut of 2025. The real suspense is over how deep the reduction could be — and whether the Fed might signal a broader pivot that could set the course for the rest of the year. So far, the Fed has resisted calls from President Trump to cut its benchmark interes…
The Fed faces economic uncertainty, political pressure as it decides whether to cut rates
WASHINGTON — In a sign of how unusual this week's Federal Reserve meeting is, the decision it will make on interest rates — usually the main event — is just one of the key unknowns to be resolved when officials…
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