Fed Chair Powell Cannot Raise Rates, Despite Pressure From Trump

A lot was riding on today’s Federal Reserve rate decision, even though the Fed was always expected to hold rates. The Fed’s communications have set the tone for disputes between President Donald Trump and the monetary stewards for months to come. In short, the central bank is still in wait-and-see mode, even if that frustrates the White House.

The dual dissents from Fed governors Christopher Waller and Michelle Bowman also show that the inflation expectations could be a contentious topic within the Fed for years to come.