The Federal Reserve indicated its expectation for two additional interest rate cuts before the end of this year, according to American media. The decision by the Federal Open Market Committee was made with a majority of 11 votes to one, where Governor Stephen Miran opposed the modest cut, calling for a half percentage point reduction. Although it was expected that Governors Michelle Bowman and Christopher Waller, appointed by President Donald Trump, would object, they supported the decision. This situation puts the Federal Reserve’s two main objectives, price stability and full employment, in a state of tension. The statement noted that “uncertainty about the economic outlook remains high,” warning of increasing downside risks to the labor market. Trump had nominated Powell to chair the Federal Reserve during his first term, while former President Joe Biden re-nominated him for a second term. His term as chair of the Federal Reserve is set to end in May 2026, and the debate and disagreement between him and Trump are intensifying. An American newspaper reported that President Donald Trump is considering announcing a successor to Federal Reserve Chairman Jerome Powell during the summer, amid growing dissatisfaction with his cautious policy on cutting interest rates. According to the newspaper’s sources, announcing a new candidate in the summer or fall would be early compared to the traditional timeline before the end of the current chair’s term in May of next year.
