Federal Reserve Holds Interest Rates Steady Amid Rising Economic Uncertainty
Jerome Powell reiterates the Fed's commitment to its monetary policy despite pressure from the Trump administration.
The U.S. Federal Reserve has decided to maintain interest rates in a range between 4.25% and 4.50%, marking a unanimous decision by the Federal Open Market Committee (FOMC).
Despite repeated criticism and warnings issued by former President Donald Trump directed at Fed Chairman Jerome Powell, the central bank remains focused on its monetary policy objectives.
The Fed noted that uncertainty regarding economic prospects has increased, and risks associated with higher inflation and unemployment have risen.
In its statement, the Fed emphasized that it will carefully evaluate incoming data, evolving outlooks, and the balancing of risks when considering the magnitude and timing of future adjustments to policy.
Powell affirmed that external pressures, including Trump’s comments, do not influence the Fed's decision-making process.
He stated, "We will always do the same thing: use our tools to promote maximum employment and price stability for the benefit of the American people." The Fed's assessment indicates that while net export fluctuations have affected recent data, economic activity appears to be expanding at a solid pace.
The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain robust.
Inflation is noted to be slightly elevated, with the Fed recognizing increased risks of higher unemployment and inflation.
In related developments, Trump has dismissed the possibility of reducing tariffs on China as part of negotiations to engage in talks with Beijing, firmly stating "no" when asked about potential tariff reductions.
Despite repeated criticism and warnings issued by former President Donald Trump directed at Fed Chairman Jerome Powell, the central bank remains focused on its monetary policy objectives.
The Fed noted that uncertainty regarding economic prospects has increased, and risks associated with higher inflation and unemployment have risen.
In its statement, the Fed emphasized that it will carefully evaluate incoming data, evolving outlooks, and the balancing of risks when considering the magnitude and timing of future adjustments to policy.
Powell affirmed that external pressures, including Trump’s comments, do not influence the Fed's decision-making process.
He stated, "We will always do the same thing: use our tools to promote maximum employment and price stability for the benefit of the American people." The Fed's assessment indicates that while net export fluctuations have affected recent data, economic activity appears to be expanding at a solid pace.
The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain robust.
Inflation is noted to be slightly elevated, with the Fed recognizing increased risks of higher unemployment and inflation.
In related developments, Trump has dismissed the possibility of reducing tariffs on China as part of negotiations to engage in talks with Beijing, firmly stating "no" when asked about potential tariff reductions.
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