Trump Begs Fed to Hit Pause. Wall Street Bets Powell Won't Blink
(Bloomberg) -- Donald Trump continues to press his case for the Federal Reserve to keep interest rates in place tomorrow. Stan Druckenmiller, Peter Navarro, Jeffrey Gundlach and the Wall Street Journal editorial page all agree.
Wall Street expects Jerome Powell to plow ahead anyway.
Odds for a Federal Reserve rate hike on Wednesday remain at better than four in five, according to federal funds futures.
Expectations for Fed tightening have come down slightly this month as the S&P 500 tumbled into a correction, inflation remains in check and economic data shows signs of softening. For Trump and a growing cohort, that’s more than enough reasons for the Fed to hold off on its ninth rate hike since 2015.
The implied odds didn’t budge Tuesday morning after Trump warned the Fed against making “yet another mistake” in a tweet.
©2018 Bloomberg L.P.