US EditionFederal Reserve likely to defy Trump, keep rates unchanged this week
- On Wednesday, April 23, 2025, the Federal Reserve maintained its benchmark interest rate at 4.3%, disregarding President Trump's requests to lower borrowing costs.
- This decision follows the Trump administration's imposition of sweeping tariffs, which have increased risks of both higher inflation and unemployment, creating economic uncertainty.
- Fed Chair Jerome Powell and other officials indicated they want to observe how the tariffs, including a 145% duty on Chinese imports, affect prices and the broader economy before adjusting policy.
- While inflation has cooled from its 2022 peak and unemployment remains low, economists warn tariffs could raise costs and job losses, with Torsten Slok predicting inflation will rise significantly over six months.
- The Fed's choice to hold rates steady reflects cautious uncertainty about trade impacts, potentially prolonging tension between the central bank and the Trump administration ahead of Powell's term end next May.
360 Articles
360 Articles
The Billings Gazette
Fed leaves interest as-is
WASHINGTON — The Federal Reserve kept its key interest rate unchanged Wednesday, brushing off President Donald Trump’s demands to lower borrowing costs, and said the risks of higher unemployment and higher inflation have risen.
Business - US Federal Reserve keeps rates unchanged despite pressure from Trump
As widely expected, the US Federal Reserve has kept its benchmark interest rate unchanged despite pressure from President Donald Trump. Fed chair Jerome Powell warned the risks of higher inflation and…
No rate cuts expected from US Fed facing 'unfavorable' conditions
WASHINGTON, United States — The US Federal Reserve faces a tough choice Wednesday as it contends with President Donald Trump’s tariff rollout: Prioritize tackling inflation by holding interest rates high, do nothing, or stimulate growth and employment by cutting them? Analysts and investors overwhelmingly think the Fed will choose to sit tight, preferring to wait
Coverage Details
Bias Distribution
- 57% of the sources are Center
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
