- The U.S. Federal Reserve decided to keep its benchmark interest rate unchanged at 3.5%–3.75%, pausing after three rate cuts last year.
- The vote was 10–2 in favor of holding rates steady, with Governors Stephen Miran and Christopher Waller dissenting in favor of a quarter-point rate cut.
- Fed Chair Jerome Powell said economic growth remains healthy, the labor market is stabilizing, and risks to both inflation and employment have diminished, though inflation is still above the 2% target.
- The decision comes amid intense political pressure from U.S. President Donald Trump, who has repeatedly criticized Powell for not cutting rates more aggressively.
- Powell faces a criminal investigation related to a Fed building renovation, which he described as political pressure, but reaffirmed the central bank’s commitment to independence.
US Federal Reserve Keeps Rates Unchanged Despite Trump Pressure
