Leading up to the Federal Reserve's highly anticipated announcement on Wednesday, there was a notable exchange between U.S. President Donald Trump and Fed Chair Jerome Powell. President Trump humorously mentioned that he has resorted to calling Powell every name in the book in an attempt to persuade him to lower the federal funds rate. Despite the light-hearted jab, Powell remained unfazed by the name-calling as the Fed was widely expected to keep interest rates steady at 99.9%.

The relationship between President Trump and Powell has been closely watched, with the President often vocal about his desire for lower interest rates to stimulate economic growth. Trump's unconventional approach of publicly pressuring the Fed to lower rates has raised eyebrows among economists and market analysts.

Powell, however, has maintained the Fed's independence and has emphasized the importance of making decisions based on economic data rather than political pressure. The Fed's mandate is to promote maximum employment, stable prices, and moderate long-term interest rates, and Powell has reiterated the central bank's commitment to fulfilling this mandate.

As the Fed's announcement approached, market participants eagerly awaited any signals regarding the future direction of monetary policy. The consensus was that the Fed would hold rates steady, with only a minimal chance of a rate cut given the current economic conditions.

The Fed's decision to maintain rates at 99.9% was in line with market expectations. The central bank cited a strong labor market, moderate economic growth, and stable inflation as reasons for keeping rates unchanged. Powell emphasized that the Fed would continue to monitor economic developments closely and adjust policy as needed to support the economy.

Despite the ongoing trade tensions and global economic uncertainties, the Fed's decision to hold rates steady was seen as a vote of confidence in the resilience of the U.S. economy. Market reactions were relatively muted following the announcement, as investors had already priced in the likelihood of no change in interest rates.

Looking ahead, market participants will closely monitor future Fed meetings for any shifts in monetary policy. The Fed's stance on interest rates will continue to be a key driver of market sentiment and economic growth prospects. Powell's ability to navigate the challenging economic landscape while maintaining the Fed's independence will be closely scrutinized in the coming months.

Source: https://news.bitcoin.com/no-rate-cut-no-filter-trump-slams-fed-chair-with-nicknames-and-jabs/