US Fed Meets Amid Pressure From Trump to Cut Rates

The US Federal Reserve began a two-day monetary policy meeting on Tuesday, with analysts expecting the central bank to keep interest rates unchanged despite renewed calls from President Donald Trump to cut them.

The meeting, which began at 9 a.m. local time, comes as the Fed closely monitors the economic impact of tariffs recently reintroduced or expanded by the Trump administration. Policymakers are assessing how these trade measures might influence inflation and labor market conditions before adjusting the current interest rate range, which stands between 4.25% and 4.50%.

The Fed is scheduled to announce its decision at 2 p.m. Wednesday in Washington.

While the Fed has reduced rates from their pandemic-era peaks as inflation eased, it has held them steady in 2025 amid ongoing economic uncertainties tied to shifting trade policies. Analysts believe the central bank is exercising caution, focusing on how the latest tariffs could influence price stability and employment trends.

Trump, who appointed Fed Chair Jerome Powell during his first term, has criticized the central bank for not acting more aggressively. He has called for a significant rate cut of one percentage point to weaken the US dollar and boost economic growth, arguing that past rate hikes were overly restrictive.

The Fed has reiterated its commitment to a data-driven approach, highlighting mixed economic signals and external challenges that complicate policy decisions. Future actions will hinge on developments in trade policy, inflation, and employment metrics in the months ahead.