Fed Keeps Rates Steady Amid White House Pressure

The US Federal Reserve has decided to hold interest rates steady, despite pressure from the White House to lower borrowing costs, citing a solid pace of economic expansion and stabilizing employment market.

The Fed’s key lending rate will remain between 3.5% and 3.75%, with policymakers continuing to monitor the impact of last year’s three interest rate cuts.

Two Fed officials, Stephen Miran and Christopher Waller, voted in favor of a rate cut, but the board ultimately decided to keep rates steady due to improvements in recent economic data.

However, a recent federal criminal probe has raised concerns about political pressure on the Fed and its independence, with former heads of the central bank criticizing the investigation as a bid to undermine its autonomy.

President Trump has publicly urged Fed Chair Jerome Powell to cut interest rates, and has launched personal attacks against him, calling him a ‘major loser’ and ‘numbskull’.

The president is expected to announce a replacement for Powell soon, with BlackRock executive Rick Rieder emerging as a front-runner, but the next chair will face credibility concerns due to Trump’s pressure on the Fed.

The S&P 500 stock index fluctuated ahead of Powell’s press conference, briefly surpassing 7,000 points for the first time on Wednesday morning.

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