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The Federal Reserve is expected to maintain interest rates at 4.25% - 4.5% despite President Trump's pressure to lower them. Trump's tariffs are causing uncertainty, with concerns that they will increase inflation and slow economic growth. While inflation remains relatively tame and the job market is strong, businesses express worry about tariff-driven price increases and supply chain disruptions. The Fed faces a dilemma: high rates to combat potential inflation or lower rates to address potential job losses if the situation worsens.

Prepared by Christopher Adams and reviewed by editorial team.