What a Trump, Powell faceoff means for your money

Amid a fresh set of attacks on Fed Chair Jerome Powell came reports that President Donald Trump might fire the central banker

Increasingly, Trump is frustrated with Powell for not lowering interest rates already

Consumers hoping for lower rates as well may be better off if the Fed sticks to its current plan, experts say (fascinating analysis)

At the same time, Inside the cess to fire a Fed ChairSquawk BoxAhead of the next Federal Reserve meeting later this month, tensions between the White House and the central bank have reached a fever pitch, given the current landscape

On Wednesday, a senior White House official told CNBC and other news outlets that President Donald Trump was ly to soon fire Fed Chair Jerome Powell

Additionally, Trump later denied those reports, although he said he wouldn't "rule out anything (an important development). "Trump has repeatedly said the central bank should have slashed its key benchmark by now

On Friday, Trump once again called Powell "too late" for not lowering interest rates already, amid market uncertainty. "'Too Late,' and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house," Trump wrote in a Truth Social post (quite telling), in today's financial world

At an economic disadvantage to countries with lower rates (something worth watching), in today's financial world

Market analysis shows Fed's benchmark sets what banks charge each other for overnight lending, but also has a trickle-down effect on almost all of the borrowing and savings rates Americans see every day

Additionally, Fixed mortgage rates, specifically, don't directly track the Fed, but are largely tied to Treasury yields and the U (noteworthy indeed)

As concerns over tariffs and the broader economy drive Treasury yields higher, mortgage rates are ing suit

Moreover, Powell said July 1 that the Fed ly would have cut rates by now, but that it has held off due to the uncertainty and inflation risks posed by Trump's trade policies, given current economic conditions

Conversely, As of the government reading, consumer prices edged higher in June as tariff-induced inflation started to pick up, in today's market environment

Nevertheless, Since December, the federal funds rate has been in a target range of between 4, given the current landscape

Futures market pricing is implying almost no chance of an interest rate cut when the Fed meets at the end of July, according to the CME Group's FedWatch gauge

Even as the pressure to slash rates ramps up significantly, Powell has repeatedly said that will not play a role in the Fed's policy decisions

Furthermore, However, 'A reflection of the resilience of the economy'As it stands, market pricing indicates the Fed is unly to consider further interest rate cuts until at least September

Once the fed funds rate comes down, consumers could see their borrowing costs start to fall as well. "The fact that the Fed has been on the sidelines since December, leaving interest rates unchanged, is a reflection of the resilience of the economy and uncertainty the path of inflation," said Greg McBride, chief financial analyst at Bankrate. "At the point where the Fed does eventually cut interest rates, we'd much rather that be due to easing inflation pressures than an economy that is rolling over," McBride said

For now, "inflation is still higher than desired," he added

The evidence shows risk is that reducing rates too soon could halt or reverse gress on tamping down inflation, according to Mark Higgins, senior vice president at Index Fund Advisors and author of " in U

Financial History: Understanding the Past to Forecast the Future

At the same time, ""Now you have a situation where Trump is willing to pressure the Fed to lower rates while they have less flexibility to do that," he recently told CNBC. "They have to keep rates higher for longer to extinguish inflation (noteworthy indeed). "The White House has said that tariffs will not cause runaway inflation, with the expectation that foreign ducers would absorb much of the costs themselves (an important development)

However, many economists expect that the full impact from tariffs on pricing could pick up in the second half of the year as surplus inventories draw down

Furthermore, For consumers waiting for borrowing costs to ease, they may be better off if the Fed sticks to its current monetary policy, according to Higgins. "There's this temptation to move fast and that is counterductive," Higgins said

Nevertheless, "If the Fed prematurely lowers rates, it's going to allow inflation to reignite and then they will have to raise rates again

However, In contrast, " to CNBC on YouTube (fascinating analysis).