Federal reserve holds interest rates steady despite pressure from Trump
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The US Federal Reserve left its key lending rate unchanged on Wednesday, maintaining its benchmark rate at 4.25% to 4.50%, despite pressure from President Donald Trump to implement further cuts. This marks the first interest rate decision since Trump returned to office.
In a unanimous vote, Fed policymakers opted to keep rates steady, citing stable unemployment and a strong labor market. “The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the Fed said in a statement.
Trump has repeatedly urged the central bank to lower interest rates, arguing that cuts would stimulate economic growth. However, the Fed has remained cautious, balancing inflation concerns with economic stability.
The decision signals the central bank’s commitment to its independent policy approach, prioritizing economic data over political pressure. Analysts will closely watch future Fed statements for any indication of potential rate adjustments in the coming months.