The US Federal Reserve plans to hold interest rates steady, even as political pressure grows from President Donald Trump. This move reflects the central bank’s careful approach during a period of economic uncertainty. Trump recently visited the Fed and urged a rate cut. He argued that lower rates would improve economic performance and reduce government borrowing costs. Still, the Fed prefers to act based on data, not politics.
Most investors believe the Fed will keep rates unchanged. According to market indicators, there is a 97 percent chance of no policy shift. The Fed continues to monitor inflation trends and trade-related risks before taking further action. The US interest rate decision highlights the Fed’s concern about inflation. Although inflation remains moderate, new tariffs have pushed prices up in some sectors. The Fed wants to avoid fueling inflation while maintaining job growth.
Trump has attacked Fed Chair Jerome Powell in recent speeches. He even joked about appointing himself to run the central bank. However, federal law prevents such a move and protects the Fed’s independence. Trump also criticized the Fed’s $2.5 billion renovation project. He blamed Powell for the extra spending and called it wasteful. The Fed responded by explaining that the plan will lower long-term costs by combining operations in one building.
The US interest rate policy supports the Fed’s dual mission to control inflation and support employment. Lower rates could help increase hiring, but they might also lead to price hikes. For now, the Fed sees no urgent reason to cut rates. In its last projection, the Fed predicted two small rate cuts later this year. These changes depend on how the economy performs over the next few months. For now, Fed officials believe it is best to wait.
Tariffs have contributed to inflation, but housing and food prices have also climbed. Analysts say several other factors are driving costs, not just trade policy. The Fed looks at these broader trends when shaping its decisions. Trump’s comments have added political pressure to the Fed’s work. Still, the central bank insists it will follow data, not politics. Officials say independence is key to good economic policy.
The next US interest rate announcement will help guide markets. Investors will watch closely to understand the Fed’s future plans. For now, the bank plans to stay the course.
For more business updates, visit DC Brief.
