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The Fed maintained interest rates on Wednesday and continued to reduce its balance sheet. Fed Chair Powell stated that the Fed is focused on controlling inflation, rather than the government borrowing or housing mortgage costs that Trump wants to drop; this FOMC speech was relatively hawkish.
He also added that the risks of rising price pressures due to the government's trade and other policies remain too high, and the Fed will not begin to ease controls until more information is gathered.
Powell's remarks caused investors to lower the probability of the Fed dropping interest rates in September from nearly 70% before the meeting to below 50%.