The US Federal Reserve has kept benchmark interest rates at 4.25% to 4.5% following the 2-day May FOMC meeting, which held between May 6 and 7. This comes despite calls from US President Donald Trump for FED Chair Jerome Powell to lower rates since inflation is down.
FOMC Meeting: US Federal Reserve Keeps Rates Unchanged
In a press release, the Fed announced it has decided to maintain the target range for the federal funds rate at 4.25% to 4.5%, which is in line with market expectations. Traders had bet in favor of Jerome Powell and the committee keeping rates steady at this May FOMC meeting.
This marks the third consecutive meeting in which the Fed has decided to leave rates steady, following the January and March monetary policy meetings. Meanwhile, before then, the US Central Bank had cut rates consecutively in September, November, and December 2024.
Jerome Powell and the FOMC remain adamant about cutting rates despite several calls from Donald Trump. The US president has asserted that there is no inflation, which is why he believes this is the perfect time for them to lower rates.
However, the Fed argues that inflation remains “somewhat elevated” and that uncertainty about the economic outlook has increased further, likely due to Trump’s tariffs, which Powell had warned about. The US Central Bank also noted that higher unemployment and inflation risks have risen.
CoinGape reported that the US Nonfarm payrolls increased by 177,000 in April compared to market expectations of 133,000. Meanwhile, the unemployment rate remained unchanged at 4.2%.
The post Breaking: FED Leaves Interest Rates Unchanged at FOMC Meeting appeared first on CoinGape.
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