The Federal Reserve left its benchmark interest rate unchanged at 4.25% to 4.5% after today’s FOMC meeting, defying pressure from President Trump for immediate rate cuts Fed Chair Jerome Powell emphasized ongoing economic uncertainty, citing mixed signals from inflation and the labor market, as well as the impact of recent tariffs
Despite calls from the White House to lower rates, the FOMC’s unanimous decision signals a cautious, wait-and-see approach. Powell reiterated the Fed’s commitment to monitoring incoming data and adjusting policy if risks to employment or inflation intensify
Markets had overwhelmingly expected no rate change, with traders now eyeing July or later for a possible cut if economic conditions deteriorate further Powell’s press conference offered little clarity on timing, leaving investors and policymakers watching closely for the Fed’s next move.
