The president also urged Powell to “do the right thing” and lower rates in March ahead of the tariff regime’s imposition.
Powell appears to rule out immediate rate reduction
Money markets now expect the Fed to cut by a total of 100 basis points in the remainder of 2025 after Trump’s tariffs roiled global markets this week. Still, Powell pushed back against the idea of immediate cuts, telling reporters in Arlington the central bank was “well positioned to wait for greater clarity” before slashing rates.
Following Trump’s global tariffs, markets anticipate the Fed will cut rates by 100 basis points in 2025 to counter recession fears.https://t.co/vjnxl4B2k0
— Mortgage Professional America Magazine (@MPAMagazineUS) April 4, 2025
The Fed’s next decision is scheduled to take place on May 6-7, with further announcements to come in June, July, September, October, and December.
Trump faced pressure to pare back his tariff barrage after global markets nosedived this week, wiping trillions of dollars from stock markets – but the president took to social media to dismiss that idea and said he would “never” back down on what’s become a signature policy.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
Publisher: Source link
