ClearValue Tax – Fed Interest Rate Decision Today (Uncut) 01-29-2025

Fed Interest Rate Decision Today: What You Need to Know

So right now, it is Wednesday morning, January 29th. In a few hours, the Federal Reserve will make their big announcements on whether they’re going to cut interest rates or not. It is my expectation that they’re not going to cut interest rates.

So after they make that announcement, the no rate cut announcements, they’re going to move on to their press conference. There’s going to be a Q&A session with reporters. It’s going to last for about 50 minutes.

In my next video, I’m going to make a highlight reel. So I’m going to take that 50 minutes. I’m going to condense it into about seven minutes of footage for you.

Okay, now, why did the Federal Reserve choose to not cut interest rates today? So I’ll tell you that there are two primary reasons. The number one reason is that inflation has been heating back up. And the second reason, the labor market is not deteriorating, at least not on the surface.

I mean, we’ll see what the revisions say. So essentially, the Federal Reserve has no reason to cut interest rates. Now, in the press conference, I want you to be expecting this.

The reporters will have multiple questions about President Trump. So there’s going to be two main Trump questions revolving around. Well, the first thing is that Trump demanding that interest rates be lowered.

And the second thing is Trump’s policies. And we’re talking about his policies on trade, taxes, government spending, and immigration. Now, regarding the first point, President Trump is demanding lower interest rates.

I want to show you the video clip if you haven’t seen it already. And then I want to touch upon it and say something very important. With oil prices going down, I’ll demand that interest rates drop immediately.

And likewise, they should be dropping all over the world. Interest rates should follow us. Okay, in response to this, the chair of the Federal Reserve, Jerome Powell, is going to say that this is not up to the president.

So the president, yeah, he can demand whatever he wants. However, the president does not have direct power to lower interest rates. So the president can try to influence lower interest rates, but again, no direct power to make it happen.

Also, another very important thing to point out is that the Federal Reserve is not a part of the U.S. government. The Federal Reserve is not a federal agency. The president has no power over the Federal Reserve.

President Trump could not even fire the chair of the Federal Reserve, Jerome Powell, even if he wanted to. So listen, I just want to bring it to your attention that the Federal Reserve is a misnomer. Their name is an inaccurate description.

The Federal Reserve is not federal. The Federal Reserve has no reserves. Anyways, when it comes to the second point, so Trump’s policies regarding that, the Federal Reserve, they’re going to be very vague.

They’re just going to say that they’re going to be data dependent and they’re going to be looking at the economic indicators. So essentially, they’re going to be dancing around those Trump policy questions. Now, in terms of the stock market’s reaction, the market’s not going to react to their decision to not cut interest rates because this is widely expected to happen.

So the market’s going to be more reactive to the Q&A session. They’re going to be looking for more, the market’s going to be looking for more guidance on when the next interest rate cut’s going to be. And also, if they’re still sticking to their plan, their projection for two interest rate cuts this year, more or less.

Now, personally, I find it very difficult to believe that the Federal Reserve will only cut interest rates two times this year, but that’s according to the last projections. But if they stick to that story, then the market’s going to consider that very hawkish. And of course, the stock market’s not going to like that because the market prefers an easier monetary policy.

But again, we’ll see what happens. We’ll see the tone in the Q&A session. So again, my next video is going to be a highlight reel.

Please look forward to that. Please subscribe. I thank you for the support and wish you a very nice day.

Take care.