Fed Expected to Hold Rates Steady as Trump Demands Cuts

As President Trump ramps up pressure for lower interest rates, the Federal Reserve is expected to hold steady — for now. Despite Trump’s sweeping tariff policy and growing impatience with Fed Chair Jerome Powell, the central bank’s rate-setting committee is likely to leave interest rates unchanged this week. With inflation ticking up and the economy still showing strength, the Fed is treading cautiously. But the political heat is on, with Trump and his allies pushing for cuts that could reshape the economic landscape — and the Fed’s independence. Markets are watching closely, with September shaping up as a potential pivot point.