The Fed on Wednesday kept interest rates in the current range, a move that was widely expected in spite of intensifying pressure from President Trump and the criminal probe into Fed Chair Jerome Powell.
The Fed on Wednesday kept interest rates in the current range, a move that was widely expected in spite of intensifying pressure from President Trump and the criminal probe into Fed Chair Jerome Powell.
After three consecutive quarter-point cuts in 2025, the central bank maintained rates in the 3.5% to 3.75% range at its first meeting of the year, in a 10-2 vote.
Policymakers opted to take a wait-and-see approach after months of weighing inflation risks against unemployment — likely assuaged by recent economic reports revealing strong GDP figures and a fairly resilient labor market.
Interest rates are currently in the “neutral” range, meaning they are not significantly restraining or promoting growth, but most Fed officials have projected further rate cuts this year.
“I’d characterize today’s meeting as a very boring meeting during very interesting times,” Christian Hoffman, head of fixed income at Thornburg Investment Management, said in a note Wednesday.
