Us Fed Meet Outcome on Wednsday: Will Soft Inflation, Trump’s Pressure Push Jerome Powell to Cut Rates This Time?

Us fed rate cut: One of the biggest market-moving events that’S lined up this week is the us federal reserve’s interest rate out. The two-day policy meeting, slated to end on June 18, would likely be the fourth Straight one where fed Chair Jerome Powell is Likely to Hold the Rates Steady, and Risk IRKING Us Presiding Donaldant Donald Tump, ADAIN.

While a weaqening labour market and still about Above-Target in Likely of Influencers of Fed’s Rate Cut Decision, The Latest Flare-up in Tensions Between Iran Iran Iran Iran Iran and Israel Has Introcced Another Element of Uncertainty for the Global Economy, which could also be found in.

The latest us retail inflation print defied the impact of tarifs for the second month in a row. Yet, Policymakers are clear Thus, Against this backdrop, analysts larger expect the fed to maintain the status quo.

Headline at 2.4% with a Sequational Gain of 0.1% Mom, US CPI was significantly lower than the market expectation of 2.5%, up 0.2% mom.

“May’2 us cpi was soft-upte-exposed, with any tariff impact not being felt for Little signal in the data, with firms continuing to manage tarifs for now, “said Madhavi Arora, Chief Economist, Emkay Global Financial Services.

She added that impact of the US tariffs will only show up in the date, eite through higher inflation or lower duty margin, a less months down the line. “In such a scenario, the fed will remain on wait-sand mode, with virtually no chance of a rate cut next week as it waits for tariff noise to Settle,” Arrara Added.

All eyes on fed ‘dot plot’

While the Us Central Bank is widely expected to hold interest rates steady, investors are for any hints about whose with might be poised to lower rates in the coming months. The Fed Funds Rate has been at 4.25% -4.50% Since the Central Bank Last Eased In December, by a Quarter Percentage Point.

Powell’s commentary will be of utmost importance, as he will share the latest round of projections, include the fed “dot plot”, which is updated Quarterly and Shows Each Fed Fed offul ‘ About the direction of the fed rate.

“Us fed is expected to keep interest rates unchanged at 4.25-4.5% in its upcoming 17-18 June meeting. All Eyes are expected to be on the summary of economic projections and the dot plot for the Dot for the Dot Plot for the Dot Plot for the Dot Plot for the Dot Plot for the Dot Plot for the Dot Plot for the Dot Plot for the Dot Plot for Fed is expected to maintain its earlier projection of two interest cuts of 25 BPS Happening in 2025, with the first of the 25 BPS Cuts to Happen in September of GEOPOLITILICAL and TREATION Inflation Forecast Can Be Slightly Higher, Along With Growth Moderately Slowing Down. Remains the key, “Opined Vaqarjaved Khan, Sr. Fundamental Analyst, Angel One.

In line of fire

This action, however, is likely to further pressurise fed Chair Powell, as Trump has been repEledly Making Calls for a Rate Cut to Support the Slowing but OtherWise Healthy Us Economy.

Speaking at the white house on Thursday, Trump Slammed The Fed Chair Over the Lack of Rate Cuts, Calling Him A Numbskull. Trump Last Chiursday said he “may have to force something” as part of his ongoing push for the central bank to lower rates by a full permentage point, but added he will not live fire power 2026.

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