The federal reserve leaves interest rates unchanged despite Trump’s pressure

the Federal Reserve On Wednesday, she said that she would leave the standard interest rate unchanged after his meeting in monetary policy in June, as policy makers continue to monitor inflation market data and labor market data amid high economic uncertainty.

The central bank’s decision leaves the standard federal funds in the range of 4.25 % to 4.5 %. This comes after the Federal Reserve has left interest rates at this level in its previous three meetings in January, March and May. The central bank reduced interest rates in its last three meetings last year, which included a 50-Basis reduction in September and a pair of discounts of 25-Basis in November and December.

In its announcement, the Federal Open Market Committee (FOMC), which directs the movements of the central bank’s monetary policy, noted that “although fluctuations in net exports have affected data, recent indicators indicate that economic activity has continued to expand at a strong pace.”

“the Unemployment It is still low, and labor market conditions are still strong. Inflation is still somewhat high, “FOMC statement indicated. Political makers added that uncertainty about economic expectations” may diminish but still high “and that the Federal Reserve” is concerned with risks on both sides of its double mandate, “which can follow the maximum employment and stable prices with long inflation in 2 %.

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FOMC policymakers also released a summary of economic projections, known as the so -called “DOT plot”, which showed that members see discounts in the interest rate in 2025, followed by one cut in 2026 and 2027.

They are also a project PCE inflation It will rise to 3 % this year before a decrease to 2.4 % in 2026 and 2.1 % the following year. The real GDP (GDP) is seen as slowing to 1.4 % in 2025 before growth captures up to 1.6 % next year and 1.8 % in 2027. Unemployment is seen as rising to 4.5 % in 2025 and 2026, before decreasing to 4.4 % in 2027.

Federal Reserve Chairman Jerome Powell “Despite the high uncertainty, the economy is in a strong position” as “the unemployment rate is still low and the labor market in or near the maximum employment. Inflation has decreased significantly, but it has somewhat exceeded our long goal.”

He added that “the current position of monetary policy leaves us in a good position to respond in time for possible economic developments.”

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Powell also discussed the opinions of policy makers on how the tariff tariffs implemented by the Trump administration on inflation, saying that “the effects of definitions will depend, among other things, on its final level. It is likely that the expectations of this level are likely to expect and reach an economic impact and its weight on the peak.

He added: “The effects of inflation can be short -term, which reflects a single -time shift in the price level. It is also possible that the inflationary effects are more stable instead.” “Avoiding this result will depend on the size of the effects of customs tariffs, on the time it takes to pass fully to the prices, and eventually to maintain the long -term inflation expectations.”

The Federal Reserve Chair was asked about the timing The effect of definitions On inflation data, which is limited to now amid the delays of management in some customs tariffs.

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“We have spent three months of hypothesis readings since high readings in January and February, and this is of course very welcome news,” Powell said. “We had inflation goods move a little … We expect to see more throughout the summer.”

He said: “It takes some time until the customs tariff in the distribution chain on the final consumer. A good example of this is that the goods that are sold to retailers today were imported several months ago before the imposition of customs duties. So we started to see some effects, and we expect to see more of them in the coming months.”

“Many companies expect to put everything – some or all the impact of definitions on the next person in the series and at the end of the consumer,” Powell said.

President Donald Trump has repeatedly criticized Powell and the Federal Reserve Movement for not lowering interest rates, including comments on Wednesday and called Powell as a “stupid person.”

The president refused to focus on Trump’s comments and said that he and FOC focus on facilitating “a good and strong American economy with a strong labor market and price stability.” He also said that he focuses only on monetary policy and not whether he will continue to work as a ruler in the Federal Reserve if he chooses the president, as expected, to reformulate him to another state as president.

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Powell has been requested by Edward Lawrence for the Fox Business Network whether the current economic data indicates a price reduction.

Powell replied: “The monetary policy must be aspiring-and this is a primary matter … We always talk about the data received, advanced expectations, and the balance of risk. We say this again and again.” “The economy appears to be in a solid state, so the labor market does not shout due to the low prices.”

He added: “The companies, as you know, were in shock after April 2, but you see commercial feelings, and you speak to businessmen. There is a completely different feeling that people are working on their way, and they understand how they will go and feel more positive and constructive than it was three months ago.”

“In short, FOMC decisions indicate that FOMC still believes that it can reduce prices this year, but it is less confident in this view than before walking in April and the outbreak of the Israeli war,” said the chief economist at Comrica Bank Bill Adams in a statement after the Federal Reserve announced that “FOMC decisions indicate that FOMC still believes that it can reduce prices this year, but it is less confident in this opinion than before walking in April and the outbreak of the Israeli war,” FOC’s chief economist said that FOMC still believes that it can reduce prices this year, but it is less confident in this opinion than before walking in April and the outbreak of the Israeli war, “

Adams added: “The Federal Reserve does not have great tools to combat shocks, such as high tariffs or disturbances in oil supplies from the Middle East,” Adams added.

Cori Stehm, the chief economist at the recruitment laboratory, has already pointed out that the view of the Federal Reserve Bank is that “the great uncertainty associated with the good labor market, which is not yet due, is a great justification for continuing the waiting and vision approach.”

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The market expectations surrounding the next price of the Federal Reserve turned slightly after the decision. The possibility of the federal reserve has increased to leave the Turk rates again in July from 83 % to 89 %, for each CME Fedwatch tool. Meanwhile, the chances of a 25-basis rate in September increased from 53 % to more than 61 %.

The upcoming monetary policy meeting of the Federal Reserve is scheduled to be held from July 29 to July.