Donald Trump and his administration have severely criticized Jerome Powell and the FOMC for reluctantly dismissing the possibility of a rate cut by the end of 2019. Conversely, the President sees the trend mentioned above of lower interest rates globally as a brewing currency war that is being waged against the US and is perpetuated by major interest banks.
Trump has urged Powell to respond by lowering the US interest rates as well, whereas the chairman of the Federal Reserve has stated on several occasions that the FED is and should be concerned only with chasing its economic goals, and political agendas should not interfere with the monetary policy of the country.
Thus far, the FOMC has been able to maintain its composure amidst rising levels of global uncertainty, following the continuation of the trade war and the recent escalations in the relationship between the US and Iran. Despite that, possible deterioration of the inflation rate would put more pressure on Powell and his colleagues to relinquish their current stance and adopt a more accommodative monetary policy.
For that reason, the CPI report that is scheduled for release on Thursday and the PPI report that is going to be released on Friday, are going to be of crucial importance for the near-term development of the monetary policy of the FED until the end of the year.