Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
No Emergency Fed Meeting Today
In contrast to speculation, the Federal Reserve is not holding an emergency meeting today, April 7, 2025. Instead, the Board of Governors is conducting a regularly scheduled closed meeting at 11:30 AM Eastern Time to discuss advance and discount rates imposed by Federal Reserve Banks. The meeting is according to the normal Fed schedule despite volatile markets and President Trump's tariff revelations.
Market Expects Aggressive Rate Cuts
The market is pricing in hopes for more profound monetary policy loosening, as investors are anticipating five interest-rate reductions by the end of 2025. The possibility of an emergency rate reduction in a week also has a 40% chance. This measures strong market expectation of a softer Federal Reserve stance in light of economic uncertainty.
Powell Signals Cautious Approach
Despite market expectations of sharp rate reductions, Federal Reserve Chairman Jerome Powell signaled preference to alter rates only when absolutely necessary. The next Federal Open Market Committee (FOMC) meeting, under which potential policy changes are set to be discussed, is on May 6-7. This also suggests a relatively more conservative and data-driven stance by the Fed, which damps expectations of immediate and immediate policy response.
