US Fed Meets Amid Rate Pause Bets, Powell Pressure Raises Independence Concerns

• The Federal Open Market Committee (FOMC) meeting in 2026 is closely watched for political messaging, with interest rates widely expected to remain unchanged.
• US Federal Reserve Chair Jerome Powell's media address is anticipated after the Department of Justice served the Fed with grand jury subpoenas regarding office building renovations.
• The meeting also follows a US Supreme Court hearing concerning the potential removal of Fed Governor Lisa Cook over mortgage fraud allegations.
• Speculation about a new Fed chief is high, as the US President is interviewing candidates, with the June FOMC meeting possibly under new leadership.
• Concerns about Fed independence are prominent, especially with Trump's pressure for lower interest rates despite sticky inflation (PCE at 2.8%) and a cooling labor market.

Why It Matters: The US Fed faces a delicate balancing act, with political pressures overshadowing economic decisions and raising independence concerns.