Latest news with #FedChairman
Telegraph
11 hours ago
- Business
- Telegraph
Fed holds US interest rates despite Trump pressure
The US Federal Reserve has voted to keep interest rates the same, despite months of pressure from Donald Trump to lower borrowing costs. The Fed said that rates will remain at a range between 4.25pc and 4.50pc, warning that uncertainty in the economy 'remains elevated'. The central bank said it still anticipated cutting rates by half a percentage point this year. However, it predicted that cuts would come slower than previously expected in future years in a protracted fight to return inflation to its 2pc target. Emphasising its remit to support maximum employment and inflation of 2pc, it said it 'would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee's goals.' Meanwhile, it cut its expectations for US GDP growth this year from 1.7pc to 1.4pc, and from 1.8pc to 1.6pc in 2026, compared to its March projections. It also raised its forecasts for the unemployment rate from 4.4pc to 4.5pc this year and from 4.3pc to 4.5pc in 2026. Inflation will rise to 3pc this year, up from its March forecast of 2.7pc. The growth downgrade followed a similar move in March, when the Fed cut its outlook for the US economy in 2025 from 2.1pc to 1.7pc. Since then, Mr Trump announced sweeping 'reciprocal' tariffs of up to 50pc at the start of April, in a huge escalation of his trade war. Today's decision came despite Mr Trump stepping up calls for rate reductions. On Wednesday afternoon, he lashed out at Fed chairman Jerome Powell and insisted there was no need to worry about inflation. 'We have a stupid person, frankly, at the Fed. He probably won't cut today,' Mr Trump told reporters. 'We have no inflation, we have only success, and I'd like to see interest rates get down. 'Maybe I should go to the Fed. Am I allowed to appoint myself?' He added: 'I think he hates me, but that's OK. I've been so nice to him, fellas … I do it every way in the book. I'm nasty, I'm nice. Nothing works.' Benjamin Shoesmith, a senior economist at KPMG, said: 'The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East.'
Fox News
07-05-2025
- Business
- Fox News
Illinois Father slams Dem governor over sanctuary policies
All times eastern The Evening Edit with Elizabeth Macdonald FOX News Radio Live Channel Coverage WATCH LIVE: Fed Chairman Jerome Powell holds news conference
