FED holds interest rates steady for third straight time
(VOVWORLD) - The US Federal Reserve (FED) held base interest rates steady on Wednesday for the third consecutive time, despite pressures from President Donald Trump.
 US Federal Reserve Chair Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, DC, US, on May 7, 2025. (Photo: Reuters) |
The central bank’s two-day policy meeting concluded with its key interest rate unchanged in a range between 4.25-4.5%, after cutting it three times at the end of last year.
FED Chairman Jerome Powell explained the decision, saying “Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated relative to our 2% longer-run goal. Total PCE prices rose 2.3% over the 12 months ending in March; excluding the volatile food and energy categories, core PCE prices rose 2.6%. Near-term measures of inflation expectations have moved up, as reflected in both market- and survey-based measures. Survey respondents, including consumers, businesses, and professional forecasters, point to tariffs as the driving factor.”
President Donald Trump has intensified calls for lower borrowing costs and exerted pressure on Mr. Powell amid rising trade tensions with China.