Yesterday, the Fed voted 9-2 to hold rates steady between 4.25% and 4.50%. During the press conference, Fed Chair Jerome Powell said that policymakers “have made no decisions about September,” sending September’s rate cut odds plunging.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The next Federal Open Market Committee (FOMC) meeting is on September 16-17. The odds of a 25-bps rate cut then are at 39.2% compared to 46.7% yesterday and 58.4% a week ago. A higher-than-expected core PCE reading is contributing to the falling odds.
In contrast, the odds of the Fed holding rates steady are at 60.8%, up from 52.4% yesterday and 39.2% a week ago.
Trump Bashes Powell for Holding Rates
“He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair,” Trump said in a Truth Social post on Thursday, adding that Powell has cost the U.S. trillions of dollars. Trump also called out the Fed’s costly renovation of its Washington, D.C. headquarters as “corrupt” and “incompetent.”
Trump previously said that the federal funds rate should be 3% lower in order to reduce the burden of U.S. government debt payments.
Follow Trump’s social media posts and analyze their sentiment with TipRanks’ Trump Dashboard.
