I may be in the minority here. But I agree with Jerome Powell holding pat on interest rates. I think he is actually doing Trump a favor.
Trump has been verbally abusing Powell trying to force his hand. A lowering would immediately juice the market and economy. Which in the short term helps Trump. But if done at the wrong time creates too many dollars chasing products. (Inflation)
Oil prices may increase which also puts pressure on potential inflation.
Once inflation starts it’s like a brush fire. Very easy to get out of control and hard to get back under control. Interest rates can be lowered almost instantly. Inflation not so much.
Late summer would be a better time to lower rates.
Powell is possibly saving Trumps economy. But will not get credit for it.
If Russia ceases fire, the Big Beautiful Bill passes, and Israel/Iran doesn’t get out of control. After all that. Interest rates should be lowered. Then the economy will go on a tear. A lot of ifs there.
Powell should hold till he sees the whites of the economies eyes.
Trump has been verbally abusing Powell trying to force his hand. A lowering would immediately juice the market and economy. Which in the short term helps Trump. But if done at the wrong time creates too many dollars chasing products. (Inflation)
Oil prices may increase which also puts pressure on potential inflation.
Once inflation starts it’s like a brush fire. Very easy to get out of control and hard to get back under control. Interest rates can be lowered almost instantly. Inflation not so much.
Late summer would be a better time to lower rates.
Powell is possibly saving Trumps economy. But will not get credit for it.
If Russia ceases fire, the Big Beautiful Bill passes, and Israel/Iran doesn’t get out of control. After all that. Interest rates should be lowered. Then the economy will go on a tear. A lot of ifs there.
Powell should hold till he sees the whites of the economies eyes.