The US Federal Reserve commenced its two-day policy meeting on Tuesday. The central bank is widely anticipated to maintain the current interest rates, despite significant political pressure from President Donald Trump to lower them.
Since their last interest rate reduction in December, Fed policymakers have maintained the benchmark lending rate. This pause reflects the officials' desire to assess the impact of President Trump's tariffs on the US economy.
This cautious strategy has drawn criticism from the President, who has repeatedly criticized Fed Chair Jerome Powell, using harsh language.
The Fed announced that the policy meeting began at 9 am US Eastern time.
Several Fed speakers have argued in favor of keeping interest rates stable, within a range of 4.25 per cent and 4.50 per cent. According to JP Morgan's chief US economist, Michael Feroli, inflation remains above the Fed's long-term target of 2 per cent, risks still exist, and the labor market is near full employment.
5 Comments
Habibi
The fears around inflation are legitimate. The Fed's steady hand is what's needed in these uncertain times.
ZmeeLove
Proud of the Fed for standing firm against political pressure. Independence is key for economic health!
Muchacho
Maintaining the current rate helps ensure economic stability. The Fed is doing the right thing by being cautious.
Mariposa
Jerome Powell needs to focus on sound economic principles rather than what Trump wants. The Fed's independence is crucial!
Matzomaster
Criticism from Trump aside, the Fed's inaction is making the economy less accessible for the average worker.