US Federal Reserve leaves interest rates unchanged

(MENAFN) On Wednesday, the US Federal Reserve decided to leave interest rates unchanged, despite pressure from President Donald Trump to continue cutting them. This marked the first decision made by the central bank since Trump returned to the White House. The Federal Reserve's statement confirmed that the interest rate-setting committee voted unanimously to maintain the current lending rate range of 4.25 percent to 4.50 percent.

Federal Reserve Chairman Jerome Powell addressed reporters after the decision, explaining that the strength of the economy meant there was no need to rush into policy adjustments. He emphasized that the central bank would continue to monitor the situation carefully before making any changes. This decision marked a pause in the series of rate cuts that had previously taken place, totaling a full percentage point in three consecutive reductions.

In its statement, the Federal Reserve highlighted that the unemployment rate had stabilized at a low level in recent months, and labor market conditions remained robust. However, the central bank also noted that inflation was still "moderately elevated," signaling that it would need to remain vigilant on price stability while balancing the overall economic situation.

The US central bank operates independently, with a mandate from Congress to manage inflation and unemployment. Last week, Trump had publicly urged the Federal Reserve and Chairman Powell to cut interest rates immediately, warning that he would issue a "strong statement" if his request was ignored.

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