Fed holds interest rates steady despite Trump pressure

The Federal Reserve on Wednesday opted to hold interest rates steady despite increased pressure from President Donald Trump to ease monetary policy.

After a two-day meeting of its monetary policy committee in Washington, D.C., the central bank announced it would hold its rate target at 4.25% to 4.50%. Investors anticipated the move. The Fed’s target rate remains a full percentage point lower than it was when the Fed pivoted to cutting rates last September.

The meeting of the Federal Open Market Committee was the third one since Trump imposed sweeping tariffs, which have since have been challenged in the courts.

Looming over the Fed’s meeting was the commentary from Trump, who has pressed the central bank to cut rates.

The Fed is targeting 2% inflation, and, broadly speaking, inflation has fallen closer to that level, but Fed officials don’t want to start cutting too soon and cause

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