Fed Chair may defy Trump's pressure, keep interest rates steady
What's the story
The US Federal Reserve is in a tough spot. Officials are inclined to keep interest rates unchanged in their next meeting in Washington.
The decision comes as fears of an economic slowdown rise and President Donald Trump and some of his aides push for a rate cut.
Fed Chair Jerome Powell may take comfort in the latest government data, which showed a strong addition of 177,000 jobs in April.
Labor market
Strong labor market supports Fed's potential decision
The strong labor market could give the Federal Reserve a reason to keep interest rates unchanged.
The Fed's preferred measure of inflation shows that price pressures are slowly easing.
While this trend would generally be welcomed by Powell and his team, higher US duties on imports could potentially derail their efforts to tame inflation.
Global uncertainty
Uncertainty prevails among central banks globally
Uncertainty has become the new normal for major central banks across the globe.
The White House is aggressively seeking tariff deals that could change the economic picture once again.
This unpredictability makes it difficult for anyone to predict what the future holds.
Bloomberg economists expect Powell to push back against market expectations and reiterate his commitment to price stability.
Inflation concerns
Concerns about inflation expectations and rate cuts
Richmond Fed President Thomas Barkin and Fed Governor Adriana Kugler have raised concerns that inflation expectations may be loosening. This, coupled with strong job growth in April has eased the pressure for an immediate rate cut.