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3w ago

Fed Maintains Rates at 4.25–4.50% Despite Trump’s Attacks

Jerome Powell stressed the Fed’s independence, warning rate decisions will hinge on upcoming economic data.

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Das Gebäude der US-Notenbank Fed in Washington, D.C., hinter einem Bauzaun.
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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.