Will the Fed cut interest rates? Experts weigh in

President Donald Trump this week renewed his call for lower interest rates after a fresh inflation reading came in lower than economists had expected. The Federal Reserve has defied Trump’s pressure campaign for months, however, opting to hold interest rates steady as policymakers observe potential tariff-induced inflation. That posture will likely shift when central bankers meet next month, economists told ABC News, predicting a quarter-point interest rate cut. A weak jobs report earlier this month revealed a sharp slowdown of the labor market, which could prompt the Fed to reduce borrowing costs as a means of warding off an economic slowdown, even if it opens up the possibility of higher inflation. "The Fed has a difficult balancing act," Derek Horstmeyer, a finance professor at George M