U.S. Federal Reserve Maintains Current Rates
(MENAFN) The US Federal Reserve maintained its benchmark federal funds rate on Wednesday, keeping it within the anticipated 4.25% to 4.50% range. This pause in rate changes aligns with widespread expectations.
In its official statement, the Fed acknowledged that while fluctuations in net exports continue to influence economic data, recent signs indicate that economic growth slowed during the first half of the year.
The Federal Open Market Committee (FOMC) reaffirmed its dual mandate, emphasizing its commitment to achieving maximum employment and targeting a long-term inflation rate of 2%.
“The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” the Fed noted, highlighting ongoing economic challenges.
When determining future adjustments to interest rates, the FOMC plans to “carefully” evaluate incoming economic data, shifting forecasts, and associated risks.
Additionally, the Committee confirmed it will persist in shrinking its holdings of Treasury securities, agency debt, and agency mortgage-backed securities as part of its broader monetary policy strategy.
This decision unfolds amid heightened uncertainty stemming from President Donald Trump’s global tariff policies and his repeated public criticisms of Fed Chair Jerome Powell. Trump has accused Powell of sluggishness in responding to mounting economic threats and has pressured the Fed to cut rates, citing actions taken by European central banks.
Trump also lambasted a renovation project underway at the Fed’s Washington headquarters. During a visit last Thursday, he disparaged the project, stating it “would have been much better if it were never started” and unfavorably compared it to his own developments.
“With all of that being said, let’s just get it finished and, even more importantly, LOWER INTEREST RATES!” he declared.
In a separate incident, reports surfaced that Trump was considering firing Powell. However, the president later dismissed these claims as “highly unlikely,” while leaving open the possibility of taking action against Powell over “possible” fraud allegations.
The Fed held rates at a historically high 5.5% from July 2023 through September 2024 before gradually lowering them to the current 4.5%. Despite mounting political pressures, the central bank has maintained a steady course, keeping rates unchanged for the last five meetings.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
