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Trump pushes Powell to cut rates amid inflation concerns and rising borrowing costs.
President Donald Trump is urging Federal Reserve Chair Jerome Powell to cut interest rates immediately, criticizing his timing ahead of the Fed’s next meeting.
This follows a 2.4% year-over-year rise in the consumer price index, slightly above the Fed’s 2% target, with inflation remaining stable.
Mortgage rates have climbed to 6.11% for a 30-year fixed loan, reflecting broader borrowing costs influenced by Fed policy.
Bond markets have scaled back expectations for rate cuts in 2026, now pricing in just 20 basis points of easing, amid concerns over inflation driven by rising oil prices after U.S. military action against Iran.
Powell’s final meetings as chair are expected in 2026, with Trump planning to nominate Kevin Warsh as his successor.
The Fed aims to balance inflation control with sustained employment, as higher rates have constrained credit access and slowed economic growth.
Trump empuja a Powell a reducir las tasas en medio de preocupaciones por la inflación y el aumento de los costos de los préstamos.