The Federal Reserve will announce its latest decision on whether to cut interest rates on Wednesday and has faced mounting political pressure from the Trump administration to lower rates to spur the economy. The Fed is widely expected to leave interest rates unchanged this week, which would make it four straight meetings in which the central bank has left rates unchanged. The benchmark federal funds rate has been at a target range of 4.25% to 4.5% since the Fed's last interest rate cut in December. Central bank policymakers kept interest rates at that level due to uncertainty about the impact of tariffs on both sides of its dual mandate to pursue maximum employment and stable prices with a long-run goal of 2% inflation. Inflation has fallen from the 40-year highs the U.S. economy experienced in 2022, but it remains above the Fed's target. President Donald Trump and Vice President JD Vance have ratcheted up their criticism of the Fed's reluctance to cut interest rates, ridiculing Federal Reserve Chair Jerome Powell as "Mr. Too Late" in their push to influence the central bank's monetary policy decision-making. After a stronger-than-expected May jobs report was released earlier this month, Trump said the Fed's Powell should cut interest rates by a full percentage point to provide "rocket fuel" for economic growth. "'Too Late' at the Fed is a disaster!" Trump wrote in a post on Truth Social. "Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!" Trump repeated his call for a full percentage point cut last Wednesday after inflation data showed the consumer price index (CPI) rose less than expected.

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