Powell’s parting gift from the Fed may be more rate cuts than expected, courtesy of deteriorating data

While the bridge between President Trump and Fed chairman Jerome Powell has been well and truly burned, the outgoing central bank chief may yet set the stage for further interest rate cuts that the White House has so doggedly pursued over the past 12 months.

Powell’s stance throughout much of 2025 was wait-and-see, frustrating the Oval Office, which wanted a sharp base rate cut. While economists widely expected a couple of cuts in 2026, perhaps one or two under Powell, the bulk of reductions...