Federal Reserve keeps interest rate unchanged, in line with forecasts
Benchmark policy rate stands at target range of 4.25%-4.50%
- Trump muses about appointing himself Fed chair, says he believes he would do 'much better' job than Fed officials
ISTANBUL
The US Federal Reserve held its benchmark federal funds rate unchanged Wednesday between the 4.25% - 4.50% target range, in line with market estimates.
"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," it said in a statement.
The Fed warned that uncertainty about the economic outlook has diminished but remains elevated.
"The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities," it said.
It indicated that the committee is "strongly" committed to supporting maximum employment and returning inflation to its 2% goal.
"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals," the Fed added.
The decision came after the uncertainty caused by US President Donald Trump's global tariffs and his repeated criticisms of Fed Chair Jerome Powell, accusing him of failing to act swiftly as economic risks mount.
Trump has repeatedly demanded the Fed cut interest rates, citing moves by the European central banks and warned that delays could stall the US economy.
Trump labeled Fed Chair Jerome Powell "stupid" on Wednesday, saying he "probably won't cut" interest rates.
He stressed that the Fed’s key benchmark rate should be at least 2 percentage points lower in his latest criticism of Powell.
“So, we have a stupid person. Frankly, he probably won’t cut today,” Trump told reporters at the White House.
"Europe had 10 cuts, and we had none. And I guess he’s a political guy. He’s a political guy who’s not a smart person, but he’s costing the country a fortune," he noted.
Trump also said he is considering appointing himself as Fed chair, as he expressed dissatisfaction about Powell’s handling of the job.
"Maybe I should go to the Fed. Am I allowed to appoint myself at the Fed? I'd do a much better job than these people," he noted.
Trump previously called the Fed chair "Too Late", "a fool", "a major loser" and a "numbskull."
The central bank kept the rate at the historically high level of 5.5% from July 2023 to September 2024, before gradually lowering it to 4.5%.
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