Washington, D.C. — The United States Federal Reserve has voted to keep its benchmark interest rate unchanged at 3.5 to 3.75 per cent, citing steady economic growth and signs of stabilisation in the labour market.
In a statement following the policy meeting, Fed officials noted that while job gains remain modest, the unemployment rate has eased, providing policymakers with enough confidence to maintain current interest rate levels.
The decision comes amid increasing political pressure from President Donald Trump, who has repeatedly criticised Federal Reserve Chairman Jerome Powell for not cutting interest rates more aggressively. Trump has argued that faster rate reductions are needed to stimulate economic growth.
The president is also expected to nominate a replacement for Powell when his term as chairman expires in May, adding a political dimension to the central bank’s policy decisions.