Federal Reserve holds interest rates as Trump piles on pressure

"The US Federal Reserve left interest rates unchanged after its first rate-setting meeting of the year on Wednesday, resisting enormous pressure from the White House to lower rates. A majority of members in the Fed's federal open market committee (FOMC) voted to pause interest rate cuts after slashing rates three times in the fall. Rates currently sit at a range of 3.5% to 3.75%."

"The Trump administration has put unprecedented pressure on the Fed chair, Jerome Powell, to cut rates, with Donald Trump launching personal attacks on Powell and the justice department opening a criminal investigation into his handling of the refurbishment of the central bank's offices. The FOMC has 12 voting members and meets just eight times a year to set interest rates."

"In December, at the last FOMC meeting, Powell implied the Fed would be pausing cuts for the time being. We're well positioned to wait and see how the economy evolves from here, he said. After the Fed meeting, Trump called Powell stiff and said that the rate drop could have been doubled. The full extent of Trump's anger would not be seen until 11 January, when Powell whose term as chair is up in May announced he was under criminal investigation."

The Federal Reserve left interest rates unchanged at 3.5%–3.75% after a majority of FOMC members voted to pause further cuts following three reductions in the autumn. Officials balanced the potential short-term boost from lower rates against the risk of higher long-term inflation. The Trump administration mounted sustained public and personal pressure on chair Jerome Powell while the Justice Department opened a criminal inquiry into Fed office renovations. The FOMC comprises 12 voting members and meets eight times yearly, making each policy decision consequential. Powell had signaled a pause in December, prompting further presidential criticism.

Read at www.theguardian.com