Donald Trump's Setback: US Federal Reserve Holds Interest Rates Steady
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News18•29-01-2026, 06:32
Donald Trump's Setback: US Federal Reserve Holds Interest Rates Steady
- •The US Federal Reserve maintained its benchmark interest rates at 3.5% to 3.75%, defying President Donald Trump's pressure for a cut.
- •Market experts had anticipated this decision, leading to minimal market volatility.
- •The Fed cited a solid pace of economic growth, limited employment growth, and stable unemployment, but noted inflation remains above desired levels.
- •Fed Chairman Jerome Powell stated the bank is observing economic developments and avoiding hasty decisions, highlighting ideological differences with Trump.
- •Trump, who appointed Powell in 2017, has repeatedly criticized him and indicated plans to replace him, with Rick Rieder and Kevin Warsh as potential successors.
Why It Matters: The US Federal Reserve held interest rates, defying Trump, citing economic stability and inflation concerns.
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