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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/fed-holds-rates-steady-amid-rising-tensions-between-white-house-and-central-bank/
The Federal Open Market Committee (FOMC) has decided to keep its benchmark interest rate unchanged within the target range of 4.25% to 4.5%, a move widely anticipated by financial experts, including Nigel Green, CEO of deVere Group, a leading global financial advisory firm.
However, the decision comes against a backdrop of heightened economic uncertainty as President Donald Trump begins his second term, with expectations that his administration will push for lower interest rates and pursue controversial policies that could reshape the economic landscape.
Green, whose firm manages billions in assets worldwide, expressed concern over the potential for renewed friction between the White House and the Federal Reserve. “Trump’s return to the White House raises significant concerns about economic stability,” he said. “The administration has already signaled its preference for lower interest rates, but the Fed must balance this pressure against the broader economic implications, particularly the risk of reigniting inflationary pressures.”
The Trump administration’s policy agenda, which includes the possibility of new tariffs and mass deportations, adds another layer of complexity to the economic outlook. Green warned that such measures could drive inflation higher and create widespread economic disruption. “Tariffs and labor market disruptions, such as mass deportations, have the potential to exacerbate inflationary pressures rather than foster sustainable growth,” he explained. “These policies could force the Fed into a defensive stance, complicating its ability to manage the economy effectively.”
The Fed’s decision to hold rates steady reflects its cautious approach amid these uncertainties. However, Green emphasized that the real story lies in the growing tension between the White House and the central bank. “The Fed’s independence is crucial in maintaining economic stability,” he said. “While the administration may push for more accommodative monetary policy, the Fed must remain vigilant to avoid overheating the economy.”
DeVere Group is advising investors to brace for potential turbulence as the Trump administration’s unconventional policies collide with the Fed’s mandate to control inflation and ensure long-term economic stability. “The economic landscape is fraught with risk,” Green noted. “Fiscal stimulus measures may provide a short-term boost, but history has shown that excessive government intervention can lead to unintended consequences, particularly when it involves trade restrictions and labor market disruptions.”
Investors, he added, should reassess their portfolios with a focus on hedging against potential volatility. “Markets thrive on stability, not unpredictability,” Green said. “The coming months will test the resilience of the economy, and those who take a measured approach to risk management will be best prepared for what lies ahead.”
As the battle lines between the White House and the Federal Reserve become increasingly clear, the stakes for the global economy are high. While the Fed’s decision to hold rates steady may provide temporary reassurance, the broader economic trajectory remains uncertain. For now, investors and policymakers alike are watching closely, aware that the interplay between fiscal and monetary policy could define the economic narrative for years to come.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/fed-holds-rates-steady-amid-rising-tensions-between-white-house-and-central-bank/
