The US Federal Reserve has opted to maintain its benchmark interest rate between 4.25% and 4.5%, defying President Trump's push for a cut. This stability reflects a cautious strategy amid mixed economic signals, including disappointing retail sales and high jobless claims, but steady unemployment rates. Fed Chair Jerome Powell emphasized the absence of urgency to lower rates despite concerns over geopolitical tensions and tariff policies. Overall, the central bank aims to balance maximum employment with a long-term inflation goal of 2%.
Fed Chair Jerome Powell has little urgency to ease. But if any easing were to have occurred, it would have been hugely stimulative, and would have lowered US debt interest expense.
Policymakers are looking at the looming and consistently shifting changes to Trump's tariff policies as well as the escalating tensions in the Middle East.
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