{"id":196306,"date":"2025-06-19T05:16:19","date_gmt":"2025-06-19T05:16:19","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/196306\/"},"modified":"2025-06-19T05:16:19","modified_gmt":"2025-06-19T05:16:19","slug":"blow-to-donald-trump-as-federal-reserve-refuses-to-cut-interest-rates-amid-inflation-fears","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/196306\/","title":{"rendered":"Blow to Donald Trump as Federal Reserve REFUSES to cut interest rates amid inflation fears"},"content":{"rendered":"

The Federal Reserve has voted to hold interest rates at their current level in a blow to US President Donald Trump’s fiscal agenda<\/a>.<\/p>\n

Earlier this afternoon, the central bank’s Federal Open Market Committee (FOMC) opted to keep the US base rate unchanged at a range of 4.25 per cent and 4.5 per cent.<\/p>\n

This move from the financial institution comes hours after Trump called Fed chair Jerome Powell “stupid”<\/a> over his hawkish monetary policy.<\/p>\n

Powell and colleagues at the Federal Reserve have been careful about cutting interest rates despite the Trump administration’s interventions.<\/p>\n

\"Donald<\/p>\n

The Federal Reserve has opted to not cut interest rates despite Trump’s pleas <\/p>\n

GETTY \/ CHAT GPT <\/p>\n

This careful approach is primarily due to fears over a looming rise in inflation, following the White House’s sweeping implementation of tariffs on foreign imports.<\/p>\n

Earlier today, Trump said: “Europe had 10 cuts, and we had none. And I guess he\u2019s a political guy [Powell], I don\u2019t know. He\u2019s a political guy who\u2019s not a smart person, but he\u2019s costing the country a fortune.<\/p>\n

“If he\u2019s worried about inflation, that\u2019s OK. I understand that. I don\u2019t think there\u2019s going to be any. So far there hasn\u2019t <\/p>\n

“But now we have a man that just refuses to lower the Fed rate, just refuses to do and he\u2019s not a smart person. I don\u2019t even think he\u2019s that political. I think he hates me, but that\u2019s OK.”<\/p>\n

Do you have a money story you\u2019d like to share? Get in touch by emailing money@gbnews.uk.<\/a><\/strong><\/p>\n

\"US<\/p>\n

How have interest rates changed in the US?<\/p>\n

GETTY <\/p>\n

Despite the FOMC’s refusal to cut interest rates at committee’s latest meeting, its members continue to price in at least two more interest rate cuts by the end of 2025.<\/p>\n

However, the central bank lowered its gross domestic product (GDP) forecast for 2025 to 1. 4 per cent and lifted its inflation projection to three per cent.<\/p>\n

In a statement, the FOMC members wrote: “Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. <\/p>\n

“The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.<\/p>\n

\"DonaldDonald Trump has made tariffs the focus of his economic agenda REUTERS\"TrumpIN DEPTH: How could Trump’s tariffs impact Britain? British exports to the US rankedGB NEWS<\/p>\n

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. <\/p>\n

“Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.”<\/p>\n

THIS IS A BREAKING NEWS STORY…MORE TO FOLLOW<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Reserve has voted to hold interest rates at their current level in a blow to US…\n","protected":false},"author":2,"featured_media":196307,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,32,1700,476,478,1232,285,16,15,978,2862],"class_list":{"0":"post-196306","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-donald-trump","10":"tag-economy","11":"tag-inflation","12":"tag-interest-rates","13":"tag-money","14":"tag-politics","15":"tag-uk","16":"tag-united-kingdom","17":"tag-us","18":"tag-us-politics"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114708335037480611","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/196306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=196306"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/196306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/196307"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=196306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=196306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=196306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}