Analysts: The Federal Reserve (FED) must indicate that it will not be forced to cut interest rates.

GoldenOctober2024

2025-05-08 14:08:57

On May 8, Van Lanschot Kemen’s analyst Fan Lundes said that the Federal Reserve’s (Fed) decision to keep the policy rate unchanged on Wednesday was not a surprise, indicating that the Fed needs to prove that it is not affected by political challenges. The Fed noted that the uncertainty over tariffs could push up inflation and unemployment. Van Lunders said policymakers are also resisting political pressure. Trump recently attacked the Federal Reserve and its chairman, Jerome Powell, again for his reluctance to lower borrowing costs. Van Lundez said that makes it more unlikely that the Fed will cut interest rates. “After all, its policy independence is at risk,” he said.

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