The move was widely expected, as Fed officials continue to adopt a tendency to face economic uncertainty arising from President Donald Trump’s growth policy agenda.
Federal reserve officials still represent a total rate of 50 basis points in 2025, but below the previous estimated 50 basis points, their view of 2026 is improved to just 25 basis points.
Together with the conflict in the Middle East, Trump’s tariffs, and signs of fragility created for a challenging background in the US economy, with prolonged uncertainty.
“Recent indicators suggest that economic activity is expanding at a concrete pace. The unemployment rate remains low, and the labor market status remains solid. Inflation is somewhat enhanced,” Fed said in a statement.
The Central Bank acknowledged that the uncertainty about the economic outlook has diminished but it is still elevated.
Despite the Fed’s cautious tone, political pressure is on the rise. President Trump, who has long criticized Powell’s leadership, started another unpaid attack before the rate decision.
“We do not have inflation, we just have success, and I want to see a decrease in interest rates,” he said, “Just a fool” sought to produce 250-base-point cuts and Powell.
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