US President Donald Trump has intensified pressure on Federal Reserve Chair Jerome Powell to cut interest rates immediately, calling for an emergency move ahead of the central bank’s March decision.
The remarks come as markets overwhelmingly expect no change, with CME futures indicating a 99% probability that rates will remain in the 3.50% to 3.75% range this week.
“What’s a better time to cut interest rates than now? A third-grade student would know that,”
Said US President Donald Trump.
Trump has repeatedly criticised Powell’s policy stance, arguing that high interest rates are harming the economy and increasing the burden of servicing the United States’ $39 trillion national debt.
The Federal Reserve is widely expected to hold rates steady at its two-day meeting, despite political pressure, and following the developments Bitcoin price was unchanged at $75,000.
Rising oil prices linked to the US-Iran conflict are adding complexity to the outlook, as higher energy costs risk fuelling inflation and reducing the likelihood of near-term rate cuts.
Market participants expect the Fed to remain cautious, with analysts noting that uncertainty around inflation and geopolitical tensions will likely keep policymakers in a wait-and-see mode in the coming months.
At the time of reporting, Bitcoin price was $74,406.57.