Fed has interest rates for the fourth time, despite tariff ups

People and businesses in the United States have encountered a whirlwind policy change in recent months. But one thing remains: the borrowing costs set by the US Central Bank.

The Federal Reserve was stuck with this strategy on Wednesday, voting in order to leave its key interest rate unchanged.

The decision was marked by the fourth consecutive without action, supporting the influential bank lending rate about 4.3%, where it has stood since December.

Bank leaders said they wanted to get additional information about the extent to which tariffs and other changes in politics will raise prices by slowing the US economy – or both before changing the course.

Usually the Fed reduces borrowing costs when it believes that the economy fights and raises them when prices start to rise too fast.

Inflation, the rate of value increases, remains above 2% of the Fed target, which is 2.4% in May.

But President Donald Trump has repeatedly called on the Fed to reduce interest rates, partly claiming that the problem had faded.

In the statement on Wednesday, on the eve of the decision of the Fed Trump, he repeated his criticism of the chairman of the Fed Jerome Powell, calling it “foolish” and reflecting on the end of the term.

Since last June, the European Central Bank has reduced interest rates. The Bank of England has reduced the cost of borrowing last month, but it is expected to stab rates this week.

Fed representatives, who have the right to pursue a policy independent from the White House, said they would make data based decisions.

Fed interest decisions determines that it charges banks for short -term loans.

This rate, in turn, has a significant impact on borrowing costs throughout the economy, reporting what regular banks will eventually charge households and enterprises for mortgage and other loans.

By 4.3%, the Fed’s landmark rate remains noticeably higher than it was from 2008 to 2022, when the bank started raising rates in response to price growth.

But this is approximately at the interest point lower than where it stood last year.