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Federal Reserve Holds Interest Rates Steady Amid Inflation Concerns and Political Pressure

The Federal Reserve maintains interest rates at 4.25%-4.5% as inflation projections rise, with President Trump urging cuts despite economic forecasts.

Overview

A summary of the key points of this story verified across multiple sources.

  • The Federal Reserve has kept interest rates unchanged at 4.25% to 4.5% for the fourth consecutive meeting amid economic uncertainty.
  • Officials anticipate inflation to rise to 3% by year-end, prompting discussions of potential rate cuts despite lower growth projections.
  • President Trump has criticized Fed Chair Jerome Powell for not lowering rates, calling him 'stupid' and 'political' in his demands.
  • The average credit card APR is around 20-25%, while high-yield bank accounts offer rates from 3.6% to 5%.
  • The Fed projects a 1.4% economic growth rate and an increase in the unemployment rate to 4.5% this year.

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Analysis

Compare how each side frames the story — including which facts they emphasize or leave out.

Center-leaning sources present a cautious perspective on the Federal Reserve's decision to maintain interest rates, emphasizing stability amid economic uncertainty. They highlight implications for consumers, such as credit card rates and mortgage forecasts, while subtly critiquing the prolonged high rates, reflecting a concern for financial impacts on everyday Americans.

The Federal Reserve has maintained its key interest rate at 4.25% to 4.5% for the fourth consecutive meeting.

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3 articles
100%

The average credit card annual percentage rate (APR) is approximately 20-25%.

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3 articles
67%

Policymakers have more time to assess how the economy responds to tariffs, layoffs and geopolitical conflict.

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1 article
100%

Articles (37)

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Epoch Times

"…Those figures suggest inflation is largely coming under control, for now."

WATCH LIVE: Powell holds news briefing amid new attacks by Trump
PBS NewsHourPBS NewsHour·6d·
Leans Left
This outlet slightly leans left.

"…It may be especially good news for retirees, who are usually advised to keep a year’s worth of living expenses in interest-bearing accounts so that they won’t have to sell stocks from their portfolio when the market is down."

How to make the most of the Fed’s latest interest rate decision | Business
CNNCNN·6d·
Leans Left
This outlet slightly leans left.

"…The combination of high debt and rising bond yields can be costly not just for the government but also for taxpayers."

Cloudy with a chance of showers? Fed's economic forecast coming today
NPRNPR·7d·
Center
This outlet is balanced or reflects centrist views.

"…The Fed last lowered interest rates in December, bringing its benchmark short-term rate to a range of 4.25% to 4.5%."

Will the Fed cut interest rates like Trump wants? Live updates
USA TODAYUSA TODAY·6d·
Center
This outlet is balanced or reflects centrist views.

"…The combination of persistent uncertainty alongside solid economic performance may prompt the Fed to hold interest rates steady on Wednesday."

Fed expected to hold interest rates steady, defying Trump
ABC NewsABC News·7d·
Center
This outlet is balanced or reflects centrist views.

"…With the economy potentially pulling in both directions, Powell and other Fed officials have underscored in recent remarks that they are prepared to wait for clearer signals on which way to move."

Fed officials left in limbo as tariffs complicate this week's rate decision
ABC NewsABC News·8d·
Center
This outlet is balanced or reflects centrist views.

"…The central bank also expects inflation to worsen in the coming months, but it still foresees two interest rate cuts by the end of this year, the same as it had projected in March."

Federal Reserve holds its benchmark interest rate steady at today's FOMC meeting
CBS NewsCBS News·6d·
Center
This outlet is balanced or reflects centrist views.

"…Keeping the rate unchanged would signal ongoing caution from the Fed as it continues to monitor how Mr. Trump's economic policies will play out."

The Fed is set to make its next rate decision on Wednesday. Here's what to expect.
CBS NewsCBS News·7d·
Center
This outlet is balanced or reflects centrist views.

"…The Federal Reserve maintained its position that the economy was stable, even as uncertainty among participants was rising."

The Fed holds interest rates steady and forecasts two rate cuts for 2025
FortuneFortune·6d·
Center
This outlet is balanced or reflects centrist views.

"…The overall expectation from Wall Street is that there will be no change in the base rate, but here are some of the headline factors which may be influencing Chair Powell’s final decision to be announced later today."

War, tariffs and Trump: What the FOMC will be thinking as they finalize their base rate decision today
FortuneFortune·6d·
Center
This outlet is balanced or reflects centrist views.

"…Those figures suggest inflation is largely coming under control, for now."

Hoping for lower borrowing costs? Fed likely to stand pat again
Associated PressAssociated Press·7d·
Center
This outlet is balanced or reflects centrist views.

"…With interest rates currently holding steady, there's still time to maximize your earnings with a high-yield savings account or CD."

What the Fed's Pause on Rate Cuts Means for Savings Account, CD Rates
CNETCNET·6d·
Center
This outlet is balanced or reflects centrist views.

"…Prospective homebuyers who have been waiting for mortgage rates to drop for the past few years may soon have to adjust to the "higher for longer" rate environment, with mortgage loan rates fluctuating between 5% and 7% over the longer term."

Mortgage Forecast: Homebuyers on Hold After Fed Puts Off Interest Rate Cuts
CNETCNET·6d·
Center
This outlet is balanced or reflects centrist views.

"…Despite elevated uncertainty, the economy is in a solid position as the unemployment rate remains low and the labor market is at or near maximum employment."

Federal Reserve leaves key interest rate unchanged for fourth straight meeting
Fox BusinessFox Business·6d·
Leans Right
This outlet slightly leans right.

"…The president added, "We have a man who just refuses to lower the Fed rate. Just refuses to do it. And he's not a smart person.""

Trump slams 'stupid' Fed Chair Jerome Powell ahead of interest rate decision
Fox BusinessFox Business·6d·
Leans Right
This outlet slightly leans right.

"…The Fed is widely expected to leave interest rates unchanged this week, which would make it four straight meetings in which the central bank has left rates unchanged."

Will pressure from Trump and Vance spur Powell to cut interest rates?
Fox BusinessFox Business·8d·
Leans Right
This outlet slightly leans right.

"…The Federal Reserve on Wednesday once again left interest rates unchanged and kept its forecast for two cuts later this year — but said uncertainty on the economic impact of President Trump’s tariffs has “diminished.”"

Federal Reserve keeps interest rates unchanged — says uncertainty over tariffs has ‘diminished’
New York PostNew York Post·6d·
Leans Right
This outlet slightly leans right.

"…However, Powell has a different set of priorities."

Powell risks Trump's wrath with Fed interest rate decision
Washington ExaminerWashington Examiner·7d·
Leans Right
This outlet slightly leans right.

"…The housing market would be in much better shape if Chairman Powell does this."

Finance Agency Chief: Powell Must Cut Rates or Step Down
NewsmaxNewsmax·6d·
Right
This outlet favors right-wing views.

"…The Fed's decision on Wednesday to leave the policy rate in its current 4.25%-4.50% range was unanimous."

Fed Sees Two Rate Cuts in 2025, Keeps Rate Steady
NewsmaxNewsmax·6d·
Right
This outlet favors right-wing views.

"…The central bank is signaling that while it may still cut rates this year, those cuts—if they come—will be modest and contingent on further declines in inflation."

Fed Shock: Fed Officials Forecast Higher Rates and Higher Inflation
Breitbart NewsBreitbart News·6d·
Right
This outlet favors right-wing views.

"…The Fed’s decision to maintain its target range at 4.25% to 4.5% met economists’ expectations."

Federal Reserve Once Again Holds Rates Steady Amid Pressure From Trump
Daily CallerDaily Caller·6d·
Right
This outlet favors right-wing views.

"…The U.S. central bank says the U.S. economy remains solid but the outlook has ‘diminished.’"

Federal Reserve Keeps Interest Rates Unchanged, Signals 2 Cuts This year
Epoch TimesEpoch Times·6d·
Right
This outlet favors right-wing views.

FAQ

Dig deeper on this story with frequently asked questions.

The Federal Reserve kept interest rates steady to address rising inflation projections and maintain a cautious monetary policy amid ongoing economic uncertainty, aiming to avoid fueling price increases further or destabilizing the job market.

The Federal Reserve now projects inflation to reach 3% by year-end 2025, up from the previous March forecast of 2.7%. Real GDP growth is expected to slow to 1.4% this year, and the unemployment rate is projected to rise to 4.5%[2].

President Trump has publicly urged the Fed to cut rates, criticizing Fed Chair Jerome Powell for not doing so, while the Fed has maintained rates to balance inflation risks and economic stability despite political pressure[4].

The current federal funds rate is in the range of 4.25% to 4.5%. This level is significant because it influences borrowing costs across the economy and is set to manage inflation without triggering a recession or overheating the labor market[4].

The Fed’s steady rate policy is likely to keep credit card APRs high (currently around 20–25%) and help sustain elevated rates for high-yield savings accounts, which presently offer between 3.6% and 5%[4].

History

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