US Fed Meets Amid Rate Pause Bets, Powell Pressure Raises Independence Concerns
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Firstpost•27-01-2026, 17:52
US Fed Meets Amid Rate Pause Bets, Powell Pressure Raises Independence Concerns
- •The Federal Open Market Committee (FOMC) meeting in 2026 is closely watched for political messaging, with interest rates widely expected to remain unchanged.
- •US Federal Reserve Chair Jerome Powell's media address is anticipated after the Department of Justice served the Fed with grand jury subpoenas regarding office building renovations.
- •The meeting also follows a US Supreme Court hearing concerning the potential removal of Fed Governor Lisa Cook over mortgage fraud allegations.
- •Speculation about a new Fed chief is high, as the US President is interviewing candidates, with the June FOMC meeting possibly under new leadership.
- •Concerns about Fed independence are prominent, especially with Trump's pressure for lower interest rates despite sticky inflation (PCE at 2.8%) and a cooling labor market.
Why It Matters: The US Fed faces a delicate balancing act, with political pressures overshadowing economic decisions and raising independence concerns.
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