Stronger-than-expected job numbers in June put the Federal Reserve chairman in a bind as President Donald Trump escalates pressure on the central bank to slash interest rates.
The Federal Reserve, governed by its mandate to keep price levels stable and facilitate full employment, will find it hard to cut interest rates. The Fed normally lowers rates when unemployment is rising or inflation has consistently met its 2% target. Despite a decline in the inflation rate from its recent highs, the measure still remains above the Fed’s target.Â
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