In line with market expectations, the U.S. Federal Reserve decided on Wednesday to keep its benchmark interest rate unchanged at a range of 4.25% to 4.50%, marking the fourth consecutive meeting without a change in rates.
In its statement, the central bank cited high uncertainty surrounding the economic outlook, while noting that the labor market remains strong and the unemployment rate remains low.
However, the Fed acknowledged that economic growth slowed during the first half of 2025, even as inflation stays moderately elevated, according to news reports.
Despite the majority consensus, Federal Reserve Governors Christopher Waller and Michelle Bowman dissented, advocating for a 25-basis-point rate cut, signaling internal division on the Fed’s path forward.
The interest rate has remained at its current level since December 2024, as the Fed tries to balance the risks of inflation with maintaining economic momentum.
U.S. President Donald Trump sharply criticized the Federal Reserve’s decision, reiterating his demand for immediate interest rate cuts to support American consumers and stimulate the housing market.
“It’s all because of the Federal Reserve,” Trump posted on Truth Social, calling the central bank’s stance harmful to everyday Americans.
Citing stronger-than-expected GDP data for the second quarter — reportedly around 3% growth — Trump argued that inflation is no longer a threat and that rate cuts are overdue.
“Too late! Interest rates should be cut now. No inflation! Let people buy their homes and pay them off!” he wrote.
The comments come as Trump intensifies pressure on the Fed to adopt a more expansionary policy, especially as the U.S. heads into the final stretch before the 2026 midterm elections.
