Fed Holds Rates Steady; Powell Won’t Comment On Trump Policies

The Federal Reserve left its benchmark interest rate unchanged after three consecutive cuts last year, signaling a more cautious approach as it monitors inflation and awaits clarity on President Donald Trump’s economic policies, Christopher Rugaber and Josh Boak reported for the Associated Press (AP).

The Fed stated that the job market remains “solid” and noted that the unemployment rate “has stabilized at a low level in recent months.” I Photo: U.S. Federal Reserve Flickr

The Fed stated that the job market remains “solid” and noted that the unemployment rate “has stabilized at a low level in recent months.” Additionally, the central bank appeared to toughen its stance on inflation, stating that it “remains somewhat elevated.”

A strong labor market and persistent inflation typically indicate that further rate cuts may not be imminent.

During a recent press conference, Fed Chair Jerome Powell largely sidestepped questions about Trump’s recent remarks, including a statement last week in which Trump claimed he would lower oil prices and then “demand” lower interest rates.

Trump also said he planned to speak with Powell about the matter.

“I’m not going to have any response or comment on whatever the president said,” Powell stated. When asked whether Trump had directly communicated his desire for lower rates, Powell replied that he had had “no contact” with the president.