The US Federal Reserve is this week expected to make its first interest rate cut this year, as it faces fierce pressure from Donald Trump and a split over whether the weakening jobs market can counter the inflationary risk posed by the US president’s tariffs.Investors widely expect rate-setters to lower borrowing costs by a quarter of a percentage point at Wednesday’s vote. After cutting rates by 100 basis points last year, the Fed has kept them at a 4.25-4.5 per cent range since December.But policymakers are divided over how quick and deep the cuts should be, and Fed chair Jay Powell has faced criticism from Trump, who has called on him to resign and labelled him a “numbskull” over his reluctance to cut rates.The US president ratcheted up his attacks last month when he tried to fire Fed governor Lisa Cook over allegations of mortgage fraud.Cook, who has denied the charges, is suing Trump, claiming he does not have the right to dismiss her.
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