The U.S. Federal Reserve has decided to hold interest rates steady as policymakers continue to assess inflation trends and the strength of the labor market.

Fed Chair Jerome Powell emphasized that while inflation has eased from previous highs, it remains above the central bank’s target, requiring a cautious approach to future rate decisions.

Officials noted that economic growth remains resilient, supported by strong consumer spending and a stable job market, though uncertainties persist.

Political pressure has also intensified, with former President Donald Trump publicly criticizing the Fed’s policies and calling for lower borrowing costs.

Market analysts say the Fed is likely to remain data-dependent, balancing the risks of persistent inflation against potential slowdowns in economic activity.

Investors are closely watching upcoming economic data for signals on when the central bank might begin cutting rates.

Source: AP News