Federal Reserve Defies Trump Again, Keeps Interest Rates Unchanged

The Federal Reserve announced Wednesday it will keep interest rates unchanged, defying President Donald Trump’s calls to cut them after continued positive economic indicators.

After two days of meetings, the central bank policymakers voted to keep the rate in the 4.25% to 4.50% range, where it has remained since December. Federal Reserve Chair Jerome Powell continues to point to unease around Trump’s tariffs, with more set to take effect on Friday. Last month, year-over-year inflation also rose to 2.7%, which remains above the Fed’s target of 2%.

“Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year,” the Fed said in a post-meeting statement. “The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”

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