Trump Wants an Interest Rate Cut Now. Will the Fed Oblige?

The Federal Reserve’s decision on whether to lower interest rates or leave them untouched will be made in a unique environment of uncertainty and speculation.

Typically, the Fed is attempting to support full employment while keeping a lid on inflation. But changing the interest rate too early, too late, too much or not enough could destabilize the economy, leading to either rapid inflation or stifled growth, for months and years into the future.

President Trump has been loudly calling for a rate cut soon that would goose up a flagging economy. The most recent decision was to keep rates steady at 2.25 percent to 2.5 percent. The rate-setting committee meets again at the end of July.

Here’s a look at the factors the Fed is considering now, and their potential impact on the economy ahead.