Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

The Federal Reserve announced Wednesday in its third meeting of 2025 that it would continue to hold interest rates steady.

The central bank’s decision to maintain its target range at 4.25% to 4.5% met expectations. The Fed similarly held rates steady in March and January.

The Fed’s announcement comes after the consumer price index, a broad measure of the price of everyday goods, decreased 0.1% in March, the Bureau of Labor Statistics reported. The Producer Price Index (PPI) showed that the prices paid to producers fell 0.4% in March.

President Donald Trump has notably been calling for the Fed to cut interest rates, writing in an April 17 Truth Social post that the central bank has been “TOO LATE AND WRONG” in holding off on lowering its target range. Trump added that Fed Chair Jerome Powell’s “termination cannot come fast enough.” (RELATED: Scott Bessent Says Trump Admin Has ‘Not Engaged In Negotiations’ With China ‘Yet’)

CHICAGO, ILLINOIS – APRIL 16: Federal Reserve Chair Jerome Powell speaks with Dr. Raghuram Rajan, a Professor of Finance at the University of Chicago’s Booth School, during an Economic Club of Chicago event on April 16, 2025 in Chicago, Illinois. Powell said that he expects “continued volatility” in markets, but that the fed is in a good position in anticipation of clarity on policy. (Photo by Vincent Alban/Getty Images)

The Fed’s Wednesday meeting comes after U.S. gross domestic product unexpectedly decreased in the first quarter of the year.

The Fed has signaled that it is waiting to see how Trump’s economic policies play out before adjusting interest rates, with Powell saying during an April 16 speech at the Economic Club of Chicago that “for the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”

While U.S. job growth beat expectations in March and April, some Americans have begun souring on Trump’s approach to the economy during his second term.

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