According to data published by the U.S. government, the Consumer Price Index (CPI) rose by only 0.1% in May. This figure was lower than the 0.2% increase seen in April. On an annual basis, inflation stood at 2.4%, falling short of economists’ expectations of 2.5%.

This “mild” inflation data has further strengthened the market’s conviction for a rate cut. According to data from CME Group, the probability of a rate cut in September rose to 76%, up from 69% just a day earlier.

Trump and Powell’s Interest Rate Dispute Continues at Full Speed

Meanwhile, tensions between U.S. President Donald Trump and Fed Chair Jerome Powell are escalating. On June 12, Trump once again launched harsh criticism against Powell.

Trump called Powell a “numbskull” and claimed that a 2-point interest rate reduction would save the U.S. economy $600 billion annually. “But we can’t get this guy to do it,” said Trump, suggesting that he might be forced to intervene if necessary.

Trump’s remarks came shortly after the Labor Department reported that producer prices rose less than expected in May. This development indicated that inflation is not rising, further supporting Trump’s argument for rate cuts.

Trump’s latest statements mark the third time in two days that his administration has criticized the Fed.

Commerce Secretary Howard Lutnick said, “Inflation is low, the economy is ready. The Fed Chair must do his job,” openly backing Trump’s stance.

Vice President JD Vance also commented on social media, stating, “The Fed’s refusal to cut rates is monetary malpractice.”

Despite these statements, markets remained largely unaffected. However, investors are increasingly aware of the growing political pressure on Powell.

At one point, Trump had signaled the possibility of removing Powell from his position. But after strong market backlash, he backed off. In his latest remarks, Trump said, “I’m not going to fire Powell, but I don’t see why it would be so bad,” once again reigniting the debate.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post When Will the Fed Cut Interest Rates? Pressure on Powell Increases! appeared first on Coin Engineer.

The Federal Reserve (Fed) will announce its interest rate decision today. At the same time, the Federal Open Market Committee (FOMC) will release its economic projections. Then, Fed Chair Jerome Powell‘s remarks will be the main focus for investors. How will these developments impact the markets?

Fed’s Interest Rate Decision

• Expectation: 4.5%
• Previous: 4.5%

The market consensus is that interest rates will remain unchanged at 4.5%. If the Fed meets expectations, it won’t come as a surprise. However, in such a case, the Fed’s forward guidance will become even more significant for market sentiment.

FOMC Economic Projections

The FOMC will share its forecasts on economic growth, inflation, and unemployment. If the committee signals that inflation remains more persistent than expected, it could indicate that tight monetary policies may continue for a longer period. This would likely have a negative impact on risk assets such as stocks and cryptocurrencies.

On the other hand, if economic growth expectations are revised positively, markets could perceive this as a bullish signal, increasing risk appetite.

Powell’s Speech

Following the interest rate decision, Fed Chair Jerome Powell will hold a press conference. His remarks on:

• The future interest rate path,
• Inflation and economic growth outlook,
• Hints on potential rate cuts,

will be critical. If Powell emphasizes that the fight against inflation continues and that rate cuts are not imminent, it could create selling pressure in the markets. However, if he adopts a more dovish tone and hints at possible rate cuts, it could spark a positive rally in the markets.

Disclaimer:

This content does not constitute investment advice. Cryptocurrency markets involve high risk, and it is essential to conduct your own research before making investment decisions.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Markets Await Key Data Releases Today! What to Expect? appeared first on Coin Engineer.