Powell keeps politics out of likely rate cut

Fed Chair Jerome Powell appears set to sidestep politics even as he oversees a likely central bank rate cut

Federal Reserve Chair Jerome Powell is expected to keep politics out of the central bank's likely rate cut later this month, according to several reports. The move comes as President Donald Trump has repeatedly attacked the Fed and Powell for raising interest rates too quickly.

Powell has said he is focused on the economy, not politics

Powell has repeatedly said that he is focused on the economy, not politics, and that the Fed's decisions will be based on economic data. In a speech last month, Powell said that the Fed is "committed to using our tools to support continued economic growth, a strong labor market, and stable prices."

In a news conference after the Fed's last meeting, Powell said that the central bank is "closely monitoring" the economy and that it is "prepared to adjust policy as appropriate." He also said that the Fed is "not on a preset course" and that it will "make decisions meeting by meeting."

The Fed is expected to cut rates later this month

The Fed is widely expected to cut interest rates by a quarter-percentage point at its next meeting on July 30-31. The move would be the first rate cut since the financial crisis of 2008.

The Fed has cut rates twice this year, in January and March. The central bank has also signaled that it is willing to cut rates further if the economy weakens.

Trump has repeatedly attacked the Fed and Powell

Trump has repeatedly attacked the Fed and Powell for raising interest rates too quickly. In a tweet in June, Trump said that the Fed is "boneheads" and that Powell "doesn't have a clue."

Powell has not responded directly to Trump's attacks, but he has said that the Fed is independent and that it will make decisions based on economic data, not politics.