Fed expected to keep rates unchanged as Chair Powell pivots back to economics

The Federal Reserve is expected to hold its key short-term interest rate steady at approximately 3.6% at its upcoming meeting in Washington. This decision follows three consecutive rate cuts last year. The meeting, one of eight held annually, occurs amidst a Justice Department investigation into Chair Jerome Powell's testimony regarding a $2.5 billion building renovation. Powell has publicly stated that the subpoenas are a pretext to punish the Fed for not cutting rates as sharply as President Trump desires. Powell aims to refocus the meeting on economic factors influencing interest rate decisions, shifting away from political disputes. He emphasized that the Fed's decisions are driven by economic concerns, not political pressure.

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