AdvertisementAdvertisementPresident Donald Trump, left, speaks with Federal Reserve Chairman Jerome Powell during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (Photo: AP/Julia Demaree Nikhinson)30 Jul 2025 12:41AM (Updated: 30 Jul 2025 12:42AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST WASHINGTON: The US Federal Reserve opened its two-day policy meeting on Tuesday (Jul 29), with the central bank widely expected to hold off on further interest rate cuts despite fierce political pressure from President Donald Trump to slash levels.Fed policymakers have kept the benchmark lending rate unchanged since their last rate reduction in December, as officials wait for clarity on how Trump’s tariffs are impacting the world’s biggest economy.Their patient approach has riled the president, who has chastised Fed Chair Jerome Powell on multiple occasions, calling him a “numbskull” and a “moron.”On Tuesday, the Fed said in a statement that its policy meeting started at 9am US Eastern time (1300 GMT) as scheduled.The case for holding interest rates steady at a range between 4.25 per cent and 4.50 per cent this week has been made by several Fed speakers, said JP Morgan chief US economist Michael Feroli in a recent note.Inflation remains above the Fed’s longer-term target of 2 per cent, risks still persist, and the labour market is near full employment, he added.Trump visits Fed headquarters, says he will not fire PowellFederal Reserve's Powell sees a ways to go on shrinking Fed holdingsCENTRAL BANK SEEN HOLDING STEADY DESPITE TRUMP CRITICISM, INTERNAL DIVISIONSThe Fed has signalled it is waiting on the effects of Trump’s sweeping tariffs on allies and competitors alike to begin to show up in economic data.As the central bank mulls changes to monetary policy, officials are seeking a balance between price stability and maximum employment.Analysts are expecting to see some dissent from Fed policymakers at the end of their meeting Wednesday, given that a couple of officials have signalled openness to rate cuts as soon as in July.“It will be interesting to watch whether Powell alludes to some potential policy easing before year-end,” or if he avoids explicit forward guidance given differences among the Fed’s rate-setting committee, said EY chief economist Gregory Daco.“With no imminent need to act, and a fractured FOMC facing asymmetric risks, the Fed will likely wait until September to deliver the next 25 basis points rate cut,” Daco added, referring to the Federal Open Market Committee.The Fed said Governor Adriana Kugler would not be attending the meeting “due to a personal matter.”Source: AFP/fsSign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST