Wed, 29 Jan 2025

Trump attacks Fed after no change in interest rates

The US central bank keeps its key interest rate unchanged as it faces significant economic uncertainty.
US President Donald Trump has launched another attack on the Federal Reserve, accusing its chairman Jerome Powell and the bank of mishandling the economy despite keeping interest rates unchanged. The Fed had decided not to cut interest rates further at its recent meeting, citing uncertainty about future economic conditions. Trump's criticism came as economists warned that some of his promised policies could drive up prices in the short term, a concern shared by some Fed officials. Powell said the bank is focused on data-driven decision making and has had "no contact" with Trump, but acknowledged potential challenges to maintaining the Fed's independence from politics. The rate-setting committee is currently "waiting to see what will happen" following Trump's promises of significant changes to the economy. Despite inflation falling below 3% in recent months, it remains above the bank's target of 2%, and Powell said the Fed was still assessing how to address this issue.
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