On July 12, "Fed mouthpiece" Nick Timiraos published an article stating that the Fed is not expected to cut interest rates at its meeting later this month, but Powell has hinted that interest rate cuts may occur later this year if inflation performs well or the labor market weakens.

Trump wants to reduce the debt servicing costs of the federal deficit, while his tax cuts could widen the federal deficit. But outside of extreme situations like war, developed economies' central banks will resist this pressure. They believe that stabilizing inflation is critical to maintaining people's confidence in their national currency.