Fed interest rate decision was taken unanimously, Trump called for interest rate reduction
Quick Look
- The Federal Reserve took its interest rate decision unanimously with the full participation of 12 members.
- High inflation and the increase in energy prices were on the agenda of the meeting.
- Markets are now focusing on the Fed's future interest rate policy, and the possibility of an interest rate increase for 2026 remains on the agenda.
AI-generated summary
Why It Matters
The Federal Reserve tries to strike a balance between inflation control and economic growth. The recent increase in energy prices and expected core inflation data increased the uncertainty in the interest rate decision.
The interest rate decision was taken unanimously with the participation of all 12 members. High inflation and the rise in energy prices were among the prominent topics in the Fed's decision. The focus of the markets is now turned to the Fed's next interest rate path. The possibility of an interest rate increase for 2026 also remained on the table.
Iran war impact
Following the rise in oil prices due to the impact of the Iran war and the stronger-than-expected core consumer inflation data recently announced in the USA, money markets were pricing in a 90 percent probability of a 25 basis point increase in interest rates at this meeting. US President Donald Trump, who is in favor of an interest rate increase, reiterated his view on Sunday that the US should have the lowest borrowing costs in the world.
Trump: Lower interest rates quickly
US President Donald Trump called for interest rates to be reduced to 1 percent or lower after the Fed increased its policy rate. Claiming that the country has "by far the best credit in the world," Trump said, "We carry almost every country in the world, and this can no longer continue like this." The US President said, “Lower interest rates for the United States and quickly.”
What to Watch
AI outlook — possibilities, not facts
There will be no change in interest rates at the Fed's next meeting.
Likely · Within weeks
Oil prices may fluctuate between 80-90 dollars in the short term.
Possible · Within weeks
Open Questions
- What will be the direction of the interest rate decision at the Fed's next meeting?
- How will Trump's interest rate cut request affect the Fed's independence?
- If the Iran war continues for a long time, how long will its impact on oil prices and global inflation be?
