The Federal Reserve held interest rates steady Wednesday, setting up another potential clash between Chairman Jerome Powell and President Trump, who is pushing for a rate cut.
The central bank’s open market committee voted 9-1 to keep the benchmark interest rate in the range of 2.25% to 2.5%, where it’s been since an increase last December. St. Louis Fed President James Bullard voted to lower the rate.
Mr. Powell also pushed back against reports that Mr. Trump might try to demote him, telling reporters, “The law is clear that I have a four-year term, and I fully intend to serve it.”
Mr. Trump has been urging a reduction in interest rates, saying inflation is in check and the economy would grow even faster if rates were lowered.
In a statement, the Fed signaled that it’s prepared to start cutting rates if needed to protect the U.S. economy from trade disputes and other threats.
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11.29.2024