Fed Pauses Aggressive Rate Cut Campaign, Waits to See Trump Policy in Action

Central bank held rates steady and vowed to monitor how Trump’s policies affect the US economy before deciding where to go next.

🔐 No Rate Cut This Time

• The Federal Reserve on Wednesday paused its aggressive campaign to cut interest rates as officials embraced a cautious stance toward President Donald Trump’s new policies.
• The US central bank held the benchmark interest rates steady at its current range of 4.25% to 4.50%, snapping a cycle of three consecutive rate cuts, which reduced borrowing costs by a solid 1%.

🕔 Wait-and-See Approach

• Fed Chair Jay Powell addressed an audience of journalists after the decision, saying that interest rates are now “significantly less restrictive” and there is no rush to trim them down further.
• He added that it could ultimately come down to Trump’s policies being enacted and seeing what effects they would have on the economy. "The committee is very much in the mode of waiting to see," he said.

💬 Powell Speaks on Trump

• Powell also briefly addressed recent remarks by Trump who has said that he “knows rates much better” than him. “I'm not going to have any response or comment whatsoever on what the president said. It's not appropriate.”
• “Really keeping our heads down and doing our work—and that's how we best serve the public,” Powell added.