Fed Maintains Interest Rates
(MENAFN) The United States Federal Reserve opted to keep its key federal funds rate steady on Wednesday, maintaining it within the 4.25 percent - 4.50 percent range—an outcome that aligned with market expectations.
In a formal announcement, the institution stated, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run."
Despite recent improvements, the central bank noted that ambiguity surrounding the economic forecast, while reduced, continues to be considerable.
The statement also confirmed that the Fed will persist with decreasing its portfolio of government bonds and housing-related debt, stating, "The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage backed securities."
Additionally, it emphasized the Federal Open Market Committee's firm dedication to achieving full employment and reining inflation back to its 2 percent benchmark.
"The Committee 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," the Fed remarked.
This monetary policy decision followed prolonged instability triggered by U.S. President Donald Trump’s global tariff measures and his consistent verbal attacks on Federal Reserve Chair Jerome Powell, whom he blames for not reacting promptly to rising economic threats.
Trump has frequently insisted that the central bank reduce borrowing costs, referencing similar actions by European monetary authorities.
He has cautioned that any hesitation in easing rates might hinder the American economy's momentum.
In his latest critique on Wednesday, Trump harshly referred to Powell as "stupid," and asserted that he "probably won't cut" rates, further escalating tensions between the executive branch and the nation's central banking authority.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
