"The US Federal Reserve left interest rates unchanged after its latest board meeting, defying once again Donald Trump's call for a cut as the central bank prepares for a leadership shake-up next month."
"Jobs gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices."
"Warsh is expected to be more amenable to Trump's calls for a rate cut than current chair Jerome Powell, who has been the target of hostile attacks toward himself and the central bank over its rates agenda."
"By setting interest rates, or the price of borrowing money, the Fed has enormous power over consumer prices and unemployment. Economists largely agree that an independent central bank is essential for a stable economy."
The US Federal Reserve decided to keep interest rates unchanged, citing elevated inflation, slow job growth, and geopolitical uncertainty. Job gains have been low, and inflation remains high, partly due to rising global energy prices. The Fed's decision comes as Kevin Warsh is confirmed as a new chair, who may support rate cuts. However, he requires the backing of other board members. Questions linger about Jerome Powell's future on the board, as he could remain until 2028 despite his term ending in May.
Read at www.theguardian.com
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