President Trump lashed out at the Federal Reserve for not cutting interest rates, calling the central bank's leader Jerome Powell 'stupid'. Photo / AFP
This week, the US Federal Reserve held interest rates steady for a fourth consecutive meeting, forecasting higher inflation and cooler growth this year while President Donald Trump’s tariffs begin to take hold and geopolitical uncertainty looms.
The Fed kept the benchmark lending rate at a range between 4.25% and 4.50%
at the end of its two-day meeting, with officials pencilling in two rate cuts this year, similar to earlier projections.
The move is likely to draw the ire of Trump, who has repeatedly pressured the independent central bank for rate reductions, and this week called Fed Chair Jerome Powell “stupid” for not lowering rates more quickly.
But the Fed said in a statement that “uncertainty about the economic outlook has diminished but remains elevated”.
On Wednesday, the Fed cut its expectations for economic growth this year, and raised its inflation and unemployment forecasts in updated projections.
