The U.S. Federal Reserve's independence is under threat from mounting political interference, according to a clear majority of economists polled by Reuters, although no one expects a July interest rate cut despite a recent divergence in views among policymakers.

In June, the ECB lowered its key deposit rate in for an the eighth consecutive quarter-point reduction. President Donald Trump thinks the Fed should follow suit.

The Federal Reserve’s independence from political interference, viewed as sacrosanct inside the central bank, is under siege.

The Federal Reserve continued work on its comprehensive effort to rewrite bank rules with a daylong conference at its headquarters on Tuesday.

For the moment, our central forecast still sees the Fed remaining on hold throughout 2025. For 2026, we have changed our base case to feature one additional rate cut in the first half, which would take the fed funds rate to neutral levels by the end of that year.

In opening a Federal Reserve conference on banking regulation on Tuesday, Chair Jerome Powell skipped making any controversy or news, as expected. Powell’s brief prepared remarks gave no monetary-policy hints and,

Treasury Secretary Scott Bessent said Monday he believes the Federal Reserve system should be reviewed for potentially holding back the US economy, which is “on the cusp” of growth that could equal the dot-com boom seen in the 1990s.

Trump wants to replace Jerome Powell with a Fed chair who will do what he wants. But that still may not produce the steep cuts Wall Street is counting on.

U.S. Treasury Secretary Scott Bessent on Wednesday suggested without evidence that the Federal Reserve's widely followed economic forecasts are motivated by politics, as the Trump administration steps up pressure on the U.