After installing the interest … does the “federal” change his path to please Trump?

US President Donald Trump was not met by reducing interest rates last Wednesday after the Federal Reserve decided to keep interest rates fixed so that the tritigue was followed after three consecutive meetings that witnessed interest rates in the months before Trump took office, according to the network. CNN American.

Trump accuses the federal reserve

Hours after the Federal Reserve announced his decision, Trump, who had previously appointed the President of the Federal Reserve, Jerome Powell, was appointed in his first term the central bank of failing to “stop the problem of inflation.”
Trump also wrote in a post on his account on the Swachial site: “I will unleash the productive operations in the field of US energy, restore balance to international trade and the return of activity to the American industry.”
Also read: The interest rate decision … an early test between the “federal” and Trump
Trump also said that the central bank “did a terrible job regarding the organization of banks” and will completely put this responsibility in the hands of the Treasury. However, it is not clear whether Trump is legally able to strip the Federal Reserve of its long -term authority to organize banks.
Meanwhile, Powell did not have much to say about the statements made by Trump about the Federal Reserve.
But Powell stressed the independence of the central bank, while Trump pushes the opposite.

Keep the federal on interest rates

The Federal Reserve remained interesting interest rates at 4.25% -4.50%, in reference to caution amid strong growth in the United States and high inflation, in line with the market expectations, according to the European Euronews network.
Increased spacing between the policies of the Federal Reserve and the European Central Bank
In December, the Federal Reserve surprised the markets by raising its forecasts for inflation for 2025 to 2.5% and lowering its expectations to reduce interest rates to two reduction process this year, decreasing from four in its forecast in September.
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The President of the Fed, Jerome Powell, confirmed that interest rates are close to the neutral levels and that any other reduction must be dealt with with great caution.

From America to Europe

While the strength of the American economy and continuous inflation make policymakers at the US Federal Reserve in a state of tension, the situation in Europe is significantly different, economic expectations deteriorate and inflation make steady progress towards a goal of 2%.
The German government reduced its forecast for economic growth for 2025 to only 0.3% compared to the previous estimate of 1.1% in October.
Economy Minister Robert Habik described the economic situation as “difficult” and warned against the continued recession for a long time and its exacerbation due to the lack of employment, excessive bureaucracy and insufficient public and private investment.

American interest rate expectations

Market expectations are currently indicating that the Federal Reserve will reduce interest rates twice in 2025 starting from June, while the European Central Bank is expected to implement four reduced operations by the end of the year.

Federal and Trump definitions

The Federal Reserve is trying to balance jobs and inflation based on data, but predicting the future is more difficult, especially when Donald Trump becomes president as the reckless president has announced a series of policies that do not seem to have a clear impact, as CNN notes.
The Federal Reserve Chairman Jerome Powell said on Wednesday that this is the most prominent reason for the bank’s stay in the waiting and anticipation situation on customs duties, as it is Trump’s distinctive economic policy, which lacks details and has not yet entered into force.
“I think the committee is in a severe waiting situation to know the policies that will be enacted. We do not know what will happen with customs tariffs, immigration, financial policy and organizational policy,” Powell said.

The rise in the dollar and the decrease of the euro

After the decision of the Federal Reserve, and before the press conference of the Powell, the euro fell to 1.04 against the dollar, which reflects the power of the American currency amid increasing contrast in monetary policy between the two economies.