Federal Reserve, Interest Rate
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Trump official criticizes Fed chief Powell
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Richard Clarida, former Federal Reserve Vice Chairman and current global economic advisor at PIMCO, joins CNBC's "Closing Bell" to discuss when the Federal Reserve may cut interest rates, economic outlook and more.
1don MSN
Federal Reserve Governor Chris Waller said on Thursday said he favors cutting the Fed's policy rate in July. He also discussed the Fed's balance sheet and why it should continue to pay interest on bank reserves.
The right to freedom of speech allows Trump to make demands of the Fed to his heart's content. But legally, he cannot compel the central bank to lower its benchmark interest rate. The Fed has the right to act independently, and its aim is to promote a healthy and stable economy by keeping inflation in check.
Trump hopes to get lower rates by replacing Fed Chair Jerome Powell with someone who would do what the president wants. But Powell’s term as chair does not end until May 2026. He’s insisted he won’t resign early.
Fannie Mae now expects rates around 6.5% by the end of 2025 and 6.1% by the end of 2026.
The prospect of the Federal Reserve once again setting its short-term interest rate target at near zero levels at some point in coming years remains real despite current relatively high levels of short-term borrowing costs,
The U.S. economy added 147,000 jobs in June, beating analyst expectations, the Bureau of Labor Statistics reported.