Fed holds interest rates steady despite Trump pressure

The US Federal Bank did not change its interest rates again despite the pressure of President Donald Trump to reduce borrowing costs.

The commonly expected decision left the key loan rate of the Federal Reserve between 4.25% and 4.5% and stopped since December.

However, in an unusual opposition, two members of the board of directors voted against the plan by saying that they prefer to cut, which is a sign that support for lower rates can expand.

Voting, new economic data, Trump’s tariffs on the impact of the world’s largest economy continued to discuss.

The Trade Department showed that the last figures of the last three years of the US economy grew by 3% annually during the April-June period.

However, larger rebounds than expected, Trump’s tariffs began, primarily directed with a sharp decrease in imports.

Jim Thorne, the Chief Market Strategist of Wellington-Altus, said to the opening bell of the BBC. “Basic data proposes an economy that loses acceleration.”

The FED usually reduces interest rates while the economy struggles and raises them if the speed of price increases starts to increase rapidly.

The policy makers in the Fed have long been following the footprints of other central banks, including the UK, which has reduced interest rates, and showed that they expect them to reduce their borrowing costs at some point this year.

However, they continued much longer than expected much longer than once, and worried about how tariffs and other new policies, including tax cuts, affect the economy.

Inflation, which is the speed of price increases, remains over 2% target of the FED and increases up to 2.7% in June.

The Federal Reserve Chair Jerome Powell argued that the labor market is stable and that tariffs are expected to increase prices carefully.

Some analysts said that economic growth between April and June can support these arguments.

However, there are risks of delay, because tariffs often slow growth and hit sales and investments.

For more than 30 years, two Fed policies have voted against the majority.

While explaining his decision, the Fed shook his head on the growth figures and said that despite the fluctuations in trade affecting the data, the growth of growth in the first half of the year was inspected.

Citi’s US chief economist Andrew Hollenhorst said that policy makers would look for signs of damage to the labor market, where the unemployment rate remained low at 4.1%, but it weakened to create business.

“The danger of waiting, you wait for a long time, and the cracks you see in the labor market are actually more concern,” he said.

Trump rejected concerns that tariffs could increase prices or focus on growth.

In addition, he attacked the Fed because he moved very slowly to reduce borrowing costs and focused his argument on the way to increase the housing market and would save money for debt payments.

On Wednesday, after the Ministry of Commerce’s Gross Domestic Product (GDP) report, he repeated his call for lower rates and addressed the FED President Jerome Powell, nicknamed Mr. Too Late.

“Much better than expected!” He wrote on social media. “It’s too late ‘should now reduce the rate. No inflation! Let people buy their homes and finance again!”

In the edition of Ratio interruptions, Trump played Powell with the idea of ignite, but he said he didn’t think it would be necessary for such a last step – a big break with a precedent.

“The expression may be a little late, but I believe that he will do the right one,” he told reporters after visiting a Fed Construction project, which he accused of wrong managing Powell. He said.