The Federal Reserve maintained interest rates between 4.25% and 4.50% on June 18, resisting pressure from President Donald Trump for immediate cuts despite low inflation. Trump criticized Fed Chair Jerome Powell, calling him “a political guy” who is costing the country. Powell emphasized that monetary policy decisions are based on a broad set of economic indicators, including labor markets, inflation expectations, and international financial developments. The Fed remains cautious, awaiting clearer data on the impact of recent tariff policies. “We can afford to wait because unemployment is at 4.2%,” Powell stated, acknowledging unusual uncertainty but noting stabilization signs after tariff implementations. Inflation nears the 2% target, though GDP contracted by 0.2% in Q1 2025. The Fed’s latest projections lowered growth forecasts for the coming years, with unemployment expected to rise slightly. Powell noted challenges in predicting tariff impacts, while Wall Street remains optimistic about job creation. Two rate cuts are projected by year’s end, contingent on economic data. The next FOMC meeting is July 29-30. “What everyone wants is a strong U.S. economy,” Powell concluded.
— new from France 24
