The U.S. Federal Reserve kept its benchmark federal funds rate unchanged on Wednesday, maintaining the target range at 4.25% to 4.50%, in a widely expected move as the central bank navigates a complex economic environment marked by slowing inflation, global trade tensions, and political pressure.
In a statement, the Federal Open Market Committee (FOMC) said it remains focused on achieving its dual mandate of maximum employment and 2% inflation over the longer term, but acknowledged that uncertainty about the economic outlook has increased.
“The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen,” the Fed said.
The central bank also reiterated its commitment to adjusting monetary policy as needed if evolving risks threaten its economic objectives.
The decision comes amid political turbulence, particularly stemming from U.S. President Donald Trump, who has repeatedly criticized Fed Chair Jerome Powell for what he views as sluggish action in the face of mounting economic risks. Trump has called for aggressive rate cuts, referencing moves by European central banks and claiming that current U.S. policy could stall the economy.
In a string of posts throughout April, Trump called Powell “always TOO LATE AND WRONG” and claimed that “termination cannot come fast enough,” suggesting the Fed’s hesitancy could lead to a broader slowdown.
Despite the political rhetoric, the Fed has gradually reduced rates from a post-pandemic high of 5.5%—held steady from July 2023 to September 2024—to its current level, signaling a measured approach to monetary easing.
Analysts say the Fed’s pause reflects caution amid conflicting signals, including stable job growth, moderating inflation, and growing concerns about the impact of Trump’s tariff policies on global trade and domestic price pressures.
The next rate decision is expected in June, with markets watching closely for signs of whether the Fed will resume cuts or hold steady amid ongoing political and economic uncertainty.
Federal Reserve Chair Jerome Powell delivered a forceful defense of the central bank’s response to the COVID-19 crisis on Sunday.
The U.S. Federal Reserve is widely expected to hold interest rates steady at its policy meeting on Wednesday, as signs of easing inflation and continued job growth clash with increasing pressure from President Donald Trump to slash rates amid the first economic contraction in three years.
U.S. President Donald Trump expressed frustration with Federal Reserve Chair Jerome Powell, stating on Thursday that Powell's termination "cannot come fast enough."
The Federal Reserve is widely expected to keep interest rates unchanged at Wednesday’s meeting.
The Federal Reserve is likely to begin cutting interest rates in June, following a mixed jobs report that highlights both robust job growth and emerging signs of labor market weakness.
The Centers for Disease Control and Prevention (CDC) confirmed Friday that COVID-19 vaccines are still recommended for healthy children aged 6 months and older—if their doctors agree.
A 61-year-old man in Alaska rescued after being trapped facedown under a massive 700-pound boulder in a freezing glacier-fed creek for three hours.
Two foreign nationals were indicted Friday in California and Wisconsin for allegedly trying to smuggle sensitive U.S. military technology to China and target an American dissident critical of Beijing.
The Federal Aviation Administration has ordered an accident investigation into SpaceX’s latest Starship test flight, which ended with the spacecraft spinning out of control and breaking apart over the Indian Ocean.
Czech Justice Minister Pavel Blažek resigned Friday after opposition parties called for his removal over a controversy involving bitcoins donated to the Ministry of Justice.
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On May 28, the inauguration ceremony of Lachin International Airport was held.
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
EU ministers have greenlit a massive €150 billion defense investment fund—dubbed the Security Action for Europe (SAFE)—as the bloc ramps up its military readiness in response to Russia’s aggression and growing uncertainty over U.S. security guarantees.
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President Donald Trump announced that he will increase steel tariffs from 25% to 50%, a move that could push up costs for industries relying on steel, including housing and auto manufacturing.
U.S. stocks wrapped up the week with a mixed finish after President Donald Trump accused China of breaking a recent trade agreement, reigniting global market jitters just weeks after a deal was struck in Geneva.
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Wall Street futures slipped as a surprise court ruling brought back most of Trump-era tariffs, shaking investor confidence heading into month-end.
Model Hailey Bieber is selling her skincare brand Rhode to e.l.f. Beauty in a deal worth up to $1 billion (£790 million), with plans for international expansion and continued viral success.
The Centers for Disease Control and Prevention (CDC) confirmed Friday that COVID-19 vaccines are still recommended for healthy children aged 6 months and older—if their doctors agree.
A 61-year-old man in Alaska rescued after being trapped facedown under a massive 700-pound boulder in a freezing glacier-fed creek for three hours.
Two foreign nationals were indicted Friday in California and Wisconsin for allegedly trying to smuggle sensitive U.S. military technology to China and target an American dissident critical of Beijing.
The Federal Aviation Administration has ordered an accident investigation into SpaceX’s latest Starship test flight, which ended with the spacecraft spinning out of control and breaking apart over the Indian Ocean.
Czech Justice Minister Pavel Blažek resigned Friday after opposition parties called for his removal over a controversy involving bitcoins donated to the Ministry of Justice.
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