Federal Reserve officials are determined to hold interest rates steady a little while longer, though an increasingly contentious debate at this week’s policy meeting may bolster expectations for rate cuts in the fall.

President Trump clashed with Federal Reserve Chair Jerome Powell as more lawmakers weigh in on a need for an interest rate cut. CBS News' Kelly O'Grady reports.

Market reactions to potential rate cuts are often positive in the short run, though the optimism can fade quickly if inflation increases, CNBC highlights from interviews with financial analysts. Higgins emphasizes that the pattern of premature cuts followed by renewed hikes could stoke volatility.

Amid all the mounting political pressure on the Federal Reserve to resume cutting interest rates, Chair Jay Powell is already overseeing the loosest financial conditions in the U.S. economy since before the central bank started hiking early in 2022.

Airline sector shows resilience with strong demand and positive earnings, indicating robust consumer and corporate spending despite earlier geopolitical concerns. Netflix reporting after close, remains a streaming leader, but valuation concerns persist; overall, stocks continue mild melt-up with benign retail and jobless data supporting stability.

Speaking to reporters at the start of his tour, Trump said that the administration was "taking a look at what's happening" at the Fed's $2.7bn (£1.8bn) renovation. "It looks like it's about $3.1bn," Trump said, as Powell shook his head.

The solution isn’t to fire Powell, it’s to cure the underlying disease, which is excessive government spending.

The Federal Reserve Chair and the US President got into a disagreement over costs at a tour of the Fed’s office building renovation in Washington on Thursday.