'MUST NOW LOWER THE RATE': Trump lashes out as Federal Reserve keeps interest rates unchanged

The US Federal Reserve has decided to keep its key interest rate steady, holding it between 4.25% and 4.5%. This marks another meeting where the central bank has chosen not to shift its policy, despite growing political pressure and internal disagreements.

Fed holds rates amid economic uncertainty

Fed Chair Jerome Powell explained the decision by pointing to uncertainty in government policies and their impact on the economy. “Changes to government policies continue to evolve and their effects on the economy remain uncertain,” Powell told reporters.

In a statement, Fed officials said the economy had “moderated” during the first half of the year, contrasting with the “solid” growth described in June. The central bank noted that net exports were influencing the data, but key indicators suggest economic activity has slowed slightly. However, the labour market remains strong, and unemployment is still low. Inflation, while lower, is still “somewhat elevated.”

First major Fed dissent in over 30 years

Two board members voted against the decision, Christopher Waller and Michelle Bowman, both appointed by US President Donald Trump. They called for a rate cut of 0.25 percentage points instead. This is the first time since 1993 that multiple Fed governors dissented on a rate decision. Their disagreement reveals the growing debate inside the central bank about when to start cutting rates, and how to respond to political pressure.

Trump slams Powell for not cutting rates

Trump, who has been urging the Fed to slash rates for months, was quick to express his anger. “Too Late’ MUST NOW LOWER THE RATE,” he wrote on social media shortly after the announcement. Speaking to reporters later, he criticised the timing of the Fed’s expected action. “I hear they’re going to do it in September. Not today. For what reason? Nobody knows,” he said.

Trump also dismissed concerns that cutting rates might push inflation higher. “Well, if that happens, we just raise [interest rates again],” he said at a bill signing ceremony at the White House. He blamed high rates for hurting ordinary Americans. “We’re keeping the rates high, and we’re hurting people from buying houses,” he said, adding another jab at Powell, “He’s doneabadjob.”