The US Federal Reserve Board of Governors has confirmed a closed-door session on Monday at 11:30 am (9:00 am IST), as the market turmoil unleashed by President Donald Trump’s drastic reciprocal tariffs continued.
The meeting follows Trump’s insistence on a immediate interest rate cut, an action he is convinced is required to offset the economic damage his tariff policy is inflicting. The Board of the Federal Reserve confirmed in a statement that the session would be held ‘under procedures set forth in section 261b.7 of the Board’s Rules Regarding Public Observation of Meetings’ and will occur at its headquarters in Washington, DC, as well as via audio/video conference.
As per the announcement by the Fed, the advance and discount rate to be levied by the Federal Reserve Banks will be mainly discussed at the meeting. All information regarding the discussion will be made available on the Board’s website following the meeting.
Trump Turns Up Pressure
President Trump ratcheted up pressure on the central bank after a sharp market drop attributed to his tariff moves. In a sharp message directed at Fed Chairman Jerome Powell, Trump tweeted: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” Although he initially nominated Powell to head the Fed, Trump has since become critical, particularly during economic turmoil.
On Friday, Powell responded to the growing concerns, cautioning that the new tariffs will fuel inflation and put pressure on jobs. “There’s a lot of waiting and seeing going on, including by us,” Powell said, adding that it was still “too soon” to change monetary policy.
Markets React Sharply to Tariff Blitz
Global markets saw a sharp selloff after Trump announced tariffs. The Dow Jones Industrial Average tumbled 1,343 points or 3.5%—early Friday, and the Nasdaq composite fell 4.2%. The S&P 500 fell 3.8% in initial trading, one of its worst weeks since March 2020 when the COVID-19 pandemic began. The benchmark index, an important gauge for many retirement funds, has lost over 20% of its recent high less than two months ago.
As the Fed heads into its special session, everyone is watching how the central bank will react to a volatile combination of political pressure, inflation risk, and market instability.
