Federal Reserve Resists Trump's Pressure to Lower Interest Rates Amid Ongoing Investigation
The US Federal Reserve has left interest rates unchanged, resisting pressure from President Donald Trump to lower them. This decision comes despite a majority of FOMC members voting to pause interest rate cuts and amid an unprecedented level of pressure on Fed Chair Jerome Powell.
Trump has launched personal attacks on Powell and the justice department has opened a criminal investigation into his handling of the refurbishment of the central bank's offices, which has raised concerns about the Fed's independence. The president has claimed that the Fed not lowering interest rates costs the US economy "hundreds of billions of dollars," but Fed officials have resisted these calls.
In a recorded statement, Powell defied Trump's bullying by calling the investigation a "pretext." He stated that the threat of criminal charges is a consequence of the Fed setting interest rates based on its best assessment of what will serve the public. Powell emphasized the importance of the Fed retaining its credibility and independence, saying that it would be hard to restore if the institution loses faith.
The FOMC has 12 voting members and meets just eight times a year to set interest rates. The stakes have been high during Trump's second term, with economists highlighting the need for the Fed's independence to maintain economic stability.
Powell's commitment to Fed independence is unwavering, and he urged his successor to stay out of elected politics and focus on serving the public well-being. When asked if he is confident the Fed can maintain independence at this point, Powell replied, "Yes – I mean, I am strongly committed to that, and so are my colleagues."
The ongoing investigation remains a concern, but Powell's stance suggests that the Fed will continue to prioritize its independence and economic decisions over political pressure.
The US Federal Reserve has left interest rates unchanged, resisting pressure from President Donald Trump to lower them. This decision comes despite a majority of FOMC members voting to pause interest rate cuts and amid an unprecedented level of pressure on Fed Chair Jerome Powell.
Trump has launched personal attacks on Powell and the justice department has opened a criminal investigation into his handling of the refurbishment of the central bank's offices, which has raised concerns about the Fed's independence. The president has claimed that the Fed not lowering interest rates costs the US economy "hundreds of billions of dollars," but Fed officials have resisted these calls.
In a recorded statement, Powell defied Trump's bullying by calling the investigation a "pretext." He stated that the threat of criminal charges is a consequence of the Fed setting interest rates based on its best assessment of what will serve the public. Powell emphasized the importance of the Fed retaining its credibility and independence, saying that it would be hard to restore if the institution loses faith.
The FOMC has 12 voting members and meets just eight times a year to set interest rates. The stakes have been high during Trump's second term, with economists highlighting the need for the Fed's independence to maintain economic stability.
Powell's commitment to Fed independence is unwavering, and he urged his successor to stay out of elected politics and focus on serving the public well-being. When asked if he is confident the Fed can maintain independence at this point, Powell replied, "Yes – I mean, I am strongly committed to that, and so are my colleagues."
The ongoing investigation remains a concern, but Powell's stance suggests that the Fed will continue to prioritize its independence and economic decisions over political pressure.
i mean come on, how about we focus on actually helping people instead of trying to manipulate numbers? 
and btw, powell is a total boss for standing his ground against trump's tantrums 
and we know that's gonna end badly. mark my words! 
. It's all about maintaining economic stability, right? 
. And honestly, I think it's refreshing to see someone stand up for what's right, even when faced with all that pressure 
. Now, let's talk layout – have you guys seen the new Fed website redesign? 
It's a total game-changer! The minimalism is on point 
. Anyway, back to the topic at hand... I think it's essential for Powell to keep his focus on the bigger picture and not get swayed by Trump's personal attacks 
.
but like, Powell is all "nope" 
Fed's gotta keep it independent or else everything falls apart 
. And yeah, the Fed's gotta keep its independence or who knows what happens to the economy? 
. He's just trying to do his job without getting bullied by the Prez 
. And I'm all for that 
... trump thinks he can just bully the fed into lowering interest rates? 
that's a total red herring 
... that's how you maintain economic stability 
.
it's so funny how cats seem to know exactly what they want to do when they're playing. anyway, back to the fed... i guess it's good that powell is standing up for himself and his colleagues 
i'm just not sure what to make of it all tbh...
The US Federal Reserve is doing us all a huge favour by resisting President Trump's pressure to lower interest rates. I mean, it's not like they're missing out on a great opportunity to boost the economy... if only for the sake of the guy in the Oval Office 
It's all about maintaining credibility and making decisions that benefit the public, not just catering to politicians who don't care about the bigger picture 
. And let's be real, the stakes are high – we need a central bank that can make tough decisions without being swayed by personal attacks or political pressure 
Powell is literally a hero! He stood up for what he believes in despite Trump's bullying and it shows how strong the Fed is 
. The FOMC making decisions based on what's good for the public, not just to appease a president... that's what leadership is all about! 
.
This whole thing is just really stressful for everyone involved. I can imagine how frustrating it must be for Jerome Powell to deal with all this pressure from Trump 
. It's like he's being bullied into doing something he doesn't think is right.
. I guess we'll just have to wait and see how it all plays out 
.
Powell's all about keeping it real and not letting politics get in the way of their work 
. It's good that he's standing firm on Fed independence – it's what keeps the economy stable 
. anyway, it's good to see powell standing strong for fed independence 
. dont wanna mess with an institution thats all about keeping the economy stable and not letting politics get in the way 