U.S. Federal Reserve has kept its benchmark interest rate steady at 4.25% to 4.50% for the fourth consecutive meeting.
This decision reflects a cautious stance amid ongoing uncertainty surrounding President Trump’s tariff policies and their potential impact on inflation and economic growth.
The Fed still anticipates two rate cuts later in 2025, but officials are split – some expect none or just one cut.
Inflation projections have been revised upward to 3.0% for 2025, while economic growth expectations have been trimmed to 1.4%.
U.S. President Donald Trump has been sharply critical of Federal Reserve Chair Jerome Powell, especially following the Fed’s decision on June 18, 2025, to keep interest rates steady.
He’s called Powell ‘a stupid person’, ‘destructive’, and ‘Too Late Powell’. accusing him of being politically motivated and slow to act on rate cuts.
And the Federal Reserve is supposed to act independently of political influence.