The Federal Reserve has decided to keep interest rates unchanged, maintaining current borrowing costs for Americans despite sustained political pressure on the central bank.Federal Reserve Chairman Jerome Powell, explaining the central bank’s cautious approach, said, “inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated.”“No rate cut today means relatively no immediate impact for consumers. If you were thinking about buying a car or a home next week, what the Fed did doesn’t really change that,” Stephen Kates of Bankrate.com said.The decision comes as President Donald Trump continues to highlight strong stock-market performance while pressing the Fed to cut rates more aggressively. “Just this morning, I saw the S&P 500 hit 7,000 for the first time ever. So I say America is back,” Trump said.Beyond the policy decision itself, the Fed is facing mounting political and legal scrutiny. The Justice Department has taken steps to examine issues related to Powell’s testimony about a costly renovation project at the Fed’s headquarters. Powell has denied any wrongdoing.Separately, the U.S. Supreme Court has heard arguments in a case stemming from President Trump’s attempt to remove Federal Reserve governor Lisa Cook. The case could have broad implications for the independence of the Federal Reserve.Despite the pressure, Powell said the central bank remains focused on its mission. “We at the Federal Reserve continue to do our jobs with objectivity, integrity, and a deep commitment to serve the American people,” he said.As Powell’s term as Fed chair expires later this year, President Trump has not yet named a successor.Meanwhile, the administration Wednesday also promoted so-called “Trump accounts,” a proposed government-backed savings program for children. Under the plan, babies born between 2025 and 2028 would receive a $1,000 starter deposit, with families able to contribute additional funds annually. Parents of older children could also open accounts without the initial government contribution. The funds would largely be restricted until the child turns 18, and the proposal does not include income limits.For more coverage from the Washington News Bureau:
WASHINGTON —
The Federal Reserve has decided to keep interest rates unchanged, maintaining current borrowing costs for Americans despite sustained political pressure on the central bank.
Federal Reserve Chairman Jerome Powell, explaining the central bank’s cautious approach, said, “inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated.”
“No rate cut today means relatively no immediate impact for consumers. If you were thinking about buying a car or a home next week, what the Fed did doesn’t really change that,” Stephen Kates of Bankrate.com said.
The decision comes as President Donald Trump continues to highlight strong stock-market performance while pressing the Fed to cut rates more aggressively. “Just this morning, I saw the S&P 500 hit 7,000 for the first time ever. So I say America is back,” Trump said.
Beyond the policy decision itself, the Fed is facing mounting political and legal scrutiny.
The Justice Department has taken steps to examine issues related to Powell’s testimony about a costly renovation project at the Fed’s headquarters. Powell has denied any wrongdoing.
Separately, the U.S. Supreme Court has heard arguments in a case stemming from President Trump’s attempt to remove Federal Reserve governor Lisa Cook. The case could have broad implications for the independence of the Federal Reserve.
Despite the pressure, Powell said the central bank remains focused on its mission. “We at the Federal Reserve continue to do our jobs with objectivity, integrity, and a deep commitment to serve the American people,” he said.
As Powell’s term as Fed chair expires later this year, President Trump has not yet named a successor.
Meanwhile, the administration Wednesday also promoted so-called “Trump accounts,” a proposed government-backed savings program for children.
Under the plan, babies born between 2025 and 2028 would receive a $1,000 starter deposit, with families able to contribute additional funds annually. Parents of older children could also open accounts without the initial government contribution. The funds would largely be restricted until the child turns 18, and the proposal does not include income limits.
For more coverage from the Washington News Bureau:
