His statement came just four days before the meeting. Pressure is mounting on Fed Chair Jerome Powell from both political and economic fronts. While expectations of a rate cut are weakening, Rieder’s remarks stood out. 

Would a Rate Cut Benefit the Economy? 

BlackRock Rieder argued that high interest rates are putting pressure on the housing market. He stated that the current levels make borrowing expensive and refinancing unattractive. This situation has led to declining homeownership rates and a contraction in the construction sector. 

“If we lower interest rates, home prices could fall, and we could build more homes,” said Rieder, suggesting this could also help bring inflation down. He also noted that current rates remain effective in containing inflation. 

However, strong employment data released in the U.S. have dampened hopes for a rate cut. Investors have largely scaled back their expectations for a July reduction. Still, figures like Rieder believe the Fed is enforcing an overly tight policy. 

The Fed’s Decision Process and Rising Political Pressure 

According to CME FedWatch Tool data, the probability of a rate cut at the July meeting is only 4.1%. This figure implies a potential cut to 400–425 basis points, while the chance of rates remaining unchanged stands at a dominant 95.9%. 

Meanwhile, Fed Chair Jerome Powell is facing not just economic but also political pressures. U.S. President Donald Trump has intensified his criticism of Powell, blaming him for economic damage due to his refusal to lower rates. 

Additionally, Powell is facing another crisis. Representative Anna Paulina Luna accused Powell of lying twice during a Senate testimony and referred the issue to the Department of Justice. This raises questions about Powell’s credibility and tenure. 

Ultimately, the Fed’s decision will be shaped not only by economic indicators but also by political winds. Calls for a rate cut are growing louder, but the real answer will come at the FOMC meeting.

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The post BlackRock CIO Calls for Fed Rate Cut as FOMC Nears! appeared first on Coin Engineer.

In his recent remarks targeting Powell, Trump said:

• “Powell is not a smart person. The Fed should cut interest rates.”
• “There probably won’t be a rate cut decision today.”
• “Interest rates should be at least two and a half points lower right now.”
• “Powell is doing a poor job.”
• “Can I appoint myself to the Fed? I’d do a much better job.”

Trump’s comments once again highlight the increasing political pressure on the Fed ahead of a potential interest rate decision.

Trump vs. the Fed: Tensions Continue to Escalate

Trump argued that lowering interest rates would reduce borrowing costs and accused Powell of failing in his role. While Trump has previously criticized Powell on multiple occasions, this time he took it a step further by asking, “Can I make myself Fed Chair?” — a statement that drew widespread attention.

Markets Remain Calm But On Edge Ahead of Fed Decision

Despite Trump’s sharp tone, the markets have remained relatively calm for now. However, such statements continue to raise questions among investors about the independence of the Fed. With the interest rate decision expected today, all eyes are once again on Powell.

Trump’s latest remarks clearly signal the mounting political pressure on the Fed. While markets have not reacted strongly yet, these statements could influence the central bank’s future interest rate policies.

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The post Tensions Rise Ahead of Fed Interest Rate Decision: Trump Slams Powell Again! appeared first on Coin Engineer.

Posting on Truth Social, Trump emphasized that the economy is still in a “transition phase” and suggested that things are just beginning. He pointed to the data, arguing that consumers have been waiting for prices to fall and that inflation is no longer a concern—therefore, the Fed should act and lower rates.

Trump Pushes for Rate Cuts: Jobs Are Strong, But Rates Still High

According to the latest figures, job growth in April surpassed forecasts. While this indicates continued economic resilience, Trump sees the current high interest rates as an unnecessary burden.

In his statement, Trump wrote, “Just like I said—we’re only getting started!” implying that the economic recovery is unfolding as he predicted. This time, he is using robust labor market performance as leverage to renew his push for lower rates.

Tariffs and Inflation Take Center Stage

Highlighting his economic agenda, Trump stated, “Billions are coming in thanks to tariffs,” referencing the trade policies implemented during his presidency. He claimed these strategies are still delivering results. Trump also argued that price pressures have eased and inflation is no longer a threat, suggesting it’s time for consumers to feel financial relief.

Trump Team Prepares Pressure Tactics on Russia

On the other hand, another important development from Trump’s camp is related to foreign policy. The Trump team is reportedly working on pressure scenarios for Russia to end the war in Ukraine. Trump appears to be following an active strategy in both domestic and foreign policy.

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The post Trump Is Determined on Interest Rates! Keeps Pressuring the Fed appeared first on Coin Engineer.