14 hours Ago By Anurag Kumar
The US Federal Reserve on Wednesday decided to keep the interest rates unchanged in a "unanimous" decision. Making the announcement, Federal Reserve Chair Jerome Powell said there was no rush to go for rate cuts until inflation and jobs data made it appropriate. The Federal Reserve announced that interest rates will remain unchanged within the 4.
25-4.50% range, citing "somewhat elevated" inflation and an uncertain economic outlook. The Federal Reserve’s decision and Chair Jerome Powell’s remarks have left monetary policy in a holding pattern.
While key macroeconomic indicators have remained largely unchanged in recent months, upcoming policy decisions from the Trump administration — on immigration, tariffs, taxes, and more — could introduce volatility. Following their first policy meeting during President Donald Trump's second term, Powell said that Fed officials are taking a wait-and-see approach, assessing the impact of potential policy shifts before making any rate adjustments. He highlighted that there is no immediate need for changes unless data indicate a renewed drop in inflation or heightened risks to the labor market.
"I think our policy stance is very well-calibrated," Powell said in a press conference after the end of the Fed's latest two-day policy meeting. "The unemployment rate has been broadly stable for six months ..
. The last couple of inflation readings ..
. have suggested more positive readings." On his Truth Social platform, Trump did not explicitly call for interest rate cuts, as he had previously suggested he would.
Instead, he blamed the inflation surge of 2021—following the COVID-19 pandemic—on the Federal Reserve, accusing it of prioritising issues like Diversity, Equity, and Inclusion (DEI), gender ideology, green energy, and what he called “fake climate change.” Returning to office last week, Trump reaffirmed his agenda, which includes imposing import tariffs, tightening immigration policies, cutting taxes, and rolling back regulations. Federal Reserve Chair Jerome Powell refrained from commenting on Trump’s remarks but reiterated the Fed’s longstanding position.
He said that the central bank makes decisions based on economic conditions, aiming to keep unemployment low while maintaining its 2% annual inflation target. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Economy, Business Economy and around the world..
