Federal Reserve Chair Jerome Powell confirmed Wednesday that the central bank will leave interest rates unchanged, reiterating that the U.S. economy remains in a “solid position.” While officials left the door open to potential rate cuts in the second half of the year, they emphasized there is no urgency to act quickly.
President Trump, anticipating the decision, criticized it earlier in the day and called for aggressive rate reductions between 1 and 2.5 percentage points. The Fed held its benchmark rate steady in the 4.25% to 4.5% range.
Updated projections from the central bank show a more cautious outlook for future cuts: only two Fed officials now foresee one rate cut in 2025, down from four previously. Additionally, fewer cuts are projected for 2026 and 2027 than earlier estimates.
“We have pretty healthy diversity of views on the committee,” Powell said at a press conference, noting that “people can look at the same data and evaluate the risks differently.” He added that these differences are likely to “diminish” as more economic data becomes available.
The Fed’s decision is unlikely to sit well with Trump, who has repeatedly pressured Powell both privately and publicly to lower rates. Last week, Trump went as far as saying he “may have to force something” if cuts don’t materialize.
Speaking to reporters at the White House on Wednesday, Trump again voiced frustration with Powell. “I call him ‘too late Powell’ because he’s always too late,” the president said, suggesting, “Maybe I should go to the Fed; I’d do a much better job.” He also speculated, “I think he hates me.”
Trump cited cooling inflation as a reason the Fed should act, repeating his view that price pressures are no longer a concern. “We have no inflation, we have only success,” he said. “I’d like to see interest rates go down.”
Asked about the political pressure, Powell emphasized the Fed’s focus on economic fundamentals. “That is pretty much all that matters to us,” he said.
When asked if he would remain at the central bank as a governor once his term as chair ends next May, Powell replied, “I’m not thinking about that.”
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