Overview
- The Federal Reserve has maintained its benchmark interest rate at 4.25–4.50%, prioritizing inflation control over political pressure for rate cuts.
- President Trump has intensified public attacks on Fed Chair Jerome Powell, calling him a 'fool' and urging immediate rate reductions.
- Fed officials highlighted the inflation risks posed by new Trump administration tariffs, which could push consumer prices higher.
- Central bank leaders, including Christopher Waller and Adriana Kugler, reaffirmed the importance of the Fed’s independence in ensuring long-term economic stability.
- Historical examples, such as Venezuela and Turkey, underscore the dangers of political interference in monetary policy, which can lead to hyperinflation and economic crises.