US Fed Chief Says Trump Rate Cuts Are Unlikely
US Federal Reserve chief Kevin Warsh says rate cuts are unlikely. Trump had pushed for the cuts.
Warsh took over as Federal Reserve chairman in May. He spoke at a banking forum in Sintra, Portugal.
Warsh said inflation risks have gone down. He said the Federal Reserve will stay independent.
He also said it will work to bring down inflation. Warsh predicted that AI will create new jobs.
He picked former Bank of England chief Mervyn King for a new role. King will help lead a Federal Reserve task force on how it talks to the public. The Federal Reserve's next meeting is set for July 28 to 29.
Klear Note — The Federal Reserve controls US interest rates. Lower rates make borrowing cheaper but can increase inflation. Higher rates fight inflation but make borrowing more expensive.
Key Terms 4
- Federal Reserve The US central bank that controls interest rates and money supply
- rate cuts Lowering interest rates to make borrowing money cheaper
- inflation When prices rise and money buys less than before
- task force A small group set up to work on one specific job