The Federal Reserve has decided to keep interest rates unchanged, even as President Donald Trump urges rate cuts. The move shows the Fed is focused on controlling inflation while supporting economic growth.
The Fed’s main policy group, the Federal Open Market Committee, voted to keep rates at their current level after months of increases meant to slow rising prices. Officials said inflation has eased but is still above the Fed’s 2 percent target and cutting rates too soon could make prices rise again.
“Keeping rates steady gives us time to watch the economy and keep inflation under control,” a Fed spokesperson said Economists say the decision helps prevent market surprises and shows the central bank is acting based on data, not politics.
Trump has repeatedly called for lower rates, arguing that high borrowing costs hurt businesses and consumers. His comments have sparked debate about the Fed’s independence but officials insist decisions are guided by economic conditions rather than political pressure.
Some investors welcomed the steady rates while others hoped for cuts to boost growth. Stock prices moved slightly after the announcement as traders weighed the Fed’s outlook.
By keeping rates steady, the Federal Reserve signals caution and a focus on long-term stability. The central bank also said it will keep watching economic trends and adjust policy if needed to support growth and protect financial stability.
Economists say the decision balances the need to keep the economy growing with the need to control inflation. Consumer spending and jobs are holding up, but global market changes and political tensions could create challenges.
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