Federal Reserve Chair Jerome Powell stated that interest rates will remain unchanged as forecasts indicate a possible inflation spike. The current target rate still stands at 4.25% to 4.5%, unchanged since July 2023. Powell’s decision faced criticism from President Trump, who argued for significantly lower rates. During congressional hearings, Powell refrained from commenting on Trump's policies, focusing instead on economic uncertainty as a primary factor in the Fed's decision-making process regarding interest rates. Powell emphasized that future economic conditions will dictate any adjustments to rates.
The Federal Reserve has not yet cut interest rates because economic forecasts predict a "meaningful increase in inflation over the course of this year," chair Jerome Powell said.
"Rates are going to depend on the path of the economy, and that's highly uncertain," Powell said.
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