Fed Holds Firm Against Rate Cuts Amid Trump's Pressure
The Federal Reserve maintained its key short-term interest rate, resisting President Trump's demands for cuts. Despite some dissent within the Fed, Chair Jerome Powell cites tariffs affecting inflation and potential economic risks. Future Fed policy remains uncertain as Trump's influence looms, with more rate decisions expected.
- Country:
- United States
In a significant move, the Federal Reserve decided to keep its key short-term interest rate unchanged for the fifth time this year, despite mounting pressure from President Donald Trump for a reduction.
Federal Reserve Chair Jerome Powell justified the decision by pointing to the rising inflation prompted by Trump's wide-reaching tariffs, which require careful assessment. Despite internal disagreements, the central bank stood firm with a rate of approximately 4.3%.
The Fed's choice sets the stage for increasing tensions with the White House, as Trump seeks to exert control over one of the nation's few independent federal entities. With future rate decisions pending, the economic outlook remains uncertain amidst these political dynamics.
(With inputs from agencies.)
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