The US Federal Reserve (FED) is announcing its key interest decision on Wednesday (8 p.m. CEST). Fed boss Jerome Powell then wants to step in front of the press. Powell and the Fed are exposed to massive pressure by US President Donald Trump. This requires an immediate interest cut to enable the banks to have cheaper money recording and to boost investments in the United States.
Trump had described Powell as a “big loose” and repeatedly threatened him with dismissal. However, experts expect the central bank to oppose the President’s claims. In view of the risk of inflation, it should leave the key interest rate in the range of 4.25 to 4.5 percent. The independence of the central bank from politics is one of the basic principles of its work.
