Having been accused of being “stupid” and “too late”, Fed Chair Powell’s decision to hold rates (not cut as Trump is demanding), will likely prompt more abuse from The White House, especially as US macro data is significantly weakening.
And despite all the tariff derangement anxiety, the worse they expect is PCE at 3.1% this year before fading back next year…
In fact, Powell may have to explain why he cut rates by 50bps the last time the US Macro Surprise Index was this weak…
Source: Bloomberg
What’s different this time?
As Trump said: “I guess he’s a political guy…”
Let’s see if the reporters in the room are brave enough to ask.
Watch the press conference live here (due to start at 1430ET):
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