Blow to Donald Trump as Federal Reserve REFUSES to cut interest rates amid inflation fears (0.014871702219915291)

<iframe frameborder="0" height="100%" scrolling="no" src="https://www.gbnews.com/res/scraper/embed/?video_url=https%3A%2F%2Fmm-v2.simplestream.com%2Fiframe%2Fplayer.php%3Fkey%3D3Li3Nt2Qs8Ct3Xq9Fi5Uy0Mb2Bj0Qs%26player%3DGB003%26uvid%3D52935751%26type%3Dvod%26viously_id%3Defo_rUO4uFY" width="100%"></iframe><br/><p class="">The Federal Reserve has voted to hold interest rates at their current level in a blow <a href="https://www.gbnews.com/money/economy-uk-tariff-donald-trump" target="_blank">to US President Donald Trump's fiscal agenda</a>.</p><p>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><h3></h3><br/><p>This move from the financial institution comes hours after <a href="https://www.gbnews.com/money/donald-trump-federal-reserve-interest-rate" target="_blank">Trump called Fed chair Jerome Powell "stupid"</a> over his hawkish monetary policy.</p><p>Powell and colleagues at the Federal Reserve have been careful about cutting interest rates despite the Trump administration's interventions.</p><h3></h3><br/><img alt="Donald Trump and interest graph" class="rm-shortcode" data-rm-shortcode-id="8159cc2e279243d168f38d6452b543d3" data-rm-shortcode-name="rebelmouse-image" id="cd3d6" loading="lazy" src="https://www.gbnews.com/media-library/donald-trump-and-interest-graph.jpg?id=61070041&width=980"/><h3></h3><br/><div class="embed-latest"></div><p>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><p>Earlier today, Trump said: "Europe had 10 cuts, and we had none. And I guess he’s a political guy [Powell], I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.</p><p>"If he’s worried about inflation, that’s OK. I understand that. I don’t think there’s going to be any. So far there hasn’t </p><p>"But now we have a man that just refuses to lower the Fed rate, just refuses to do and he’s not a smart person. I don’t even think he’s that political. I think he hates me, but that’s OK."</p><p><strong><em>Do you have a money story you’d like to share? Get in touch by emailing <a href="mailto:[email protected]" target="_blank" title="mailto:[email protected]">[email protected].</a></em></strong></p><h3></h3><br/><img alt="US interest rate graph" class="rm-shortcode" data-rm-shortcode-id="1868e36048545df69a89c111e8c62711" data-rm-shortcode-name="rebelmouse-image" id="c2556" loading="lazy" src="https://www.gbnews.com/media-library/us-interest-rate-graph.jpg?id=61070097&width=1245&height=700&quality=90&coordinates=233%2C0%2C233%2C0"/><h3></h3><br/><p>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><p>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><p>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><p>"The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.</p><h3></h3><br/><img alt="Donald Trump shows off his tariff board" class="rm-shortcode" data-rm-shortcode-id="a4ad15f0e312ffdb374e617a6793ff05" data-rm-shortcode-name="rebelmouse-image" id="9ef6b" loading="lazy" src="https://www.gbnews.com/media-library/donald-trump-shows-off-his-tariff-board.jpg?id=59788069&width=980"/><h3></h3><br/><div class="embed-dontmiss"></div><p><strong>LATEST DEVELOPMENTS:</strong></p><ul><li><a href="https://www.gbnews.com/money/uk-inflation-drops-rachel-reeves-economy" target="_self">Inflation FALLS to 3.4 per cent - but remains significantly higher than Rachel Reeves's target</a></li><li><a href="https://www.gbnews.com/money/economy-uk-growth-downgraded-rising-costs-trump-tariffs" target="_self">Economy warning: UK growth downgraded AGAIN as firms struggle with rising costs and Trump tariffs</a></li><li><a href="https://www.gbnews.com/money/tsb-sale-sabadell-uk" target="_self">Major high street bank up for sale as Spanish owner weighs UK exit</a></li></ul><h3></h3><br/><img alt="Trump tariff chart" class="rm-shortcode" data-rm-shortcode-id="723827fc75248a9416b6472d97833fbe" data-rm-shortcode-name="rebelmouse-image" id="86343" loading="lazy" src="https://www.gbnews.com/media-library/trump-tariff-chart.png?id=59785719&width=980"/><h3></h3><br/><p>"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. </p><p>"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><p><strong><em>THIS IS A BREAKING NEWS STORY...MORE TO FOLLOW</em></strong></p>