Overview
- The Federal Reserve held its benchmark rate at 4.25–4.50% for the fifth consecutive meeting, keeping policy on pause since December 2024.
- Policymakers pointed to a robust labor market and elevated inflation risks from President Trump’s tariff measures as reasons to sustain a moderately restrictive stance.
- Governors Christopher Waller and Michelle Bowman broke ranks for the first time since 1993 by voting for a quarter-point rate cut.
- President Trump escalated personal assaults, labeling Chair Powell a “stur Idiot” and urging Fed governors to assume control if he refuses to cut rates.
- Officials signaled that any move toward easing will depend on fresh economic indicators, with markets penciling in the first cut no earlier than September.