Powell to face questions at Wednesday Fed news conference after rate decision

Federal Reserve Chair Jerome Powell will take reporters’ questions on Wednesday after the central bank announces its decision on interest rates. The central bank is widely expected to leave borrowing costs unchanged after policymakers voted to cut interest rates at the past three meetings.

Wall Street and Washington are watching for Powell’s assessment of the economy and any comments about President Trump’s escalating pressure on him and his colleagues. The Times highlights several questions Powell is likely to face, including whether there is any sign the administration is backing down after Powell accused it of using threats of a criminal investigation as "pretexts" to push the Fed toward lower rates.

Senator Thom Tillis has pledged to block confirmation of Trump’s Fed nominees until the legal matter is resolved. Other issues noted include the legal effort to remove Fed Governor Lisa Cook — the Supreme Court heard arguments last week and court watchers thought justices were likely to side against the administration — and Powell’s attendance at those arguments, which rankled Treasury Secretary Scott Bessent.

Powell’s term as chair expires in May, and he could remain on the Fed board through early 2028, a move that would affect the president’s ability to install another policymaker. The newsletter also mentions Powell’s recent comments that artificial intelligence could be an important driver of productivity, a view that has drawn skepticism from some economists.

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