US Fed sidesteps Trump’s push for further cuts, holds rates steady

The US Federal Reserve has decided to keep its key interest rate steady, defying President Trump’s calls for further rate cuts. The decision comes after three consecutive rate reductions. The Fed cited stable unemployment rates and solid labor market conditions, with inflation slightly elevated. Despite Trump’s pressure on the Fed to lower rates, most analysts expect the Fed to maintain its pause at the next meeting in March. Trump’s policies, such as tariffs and immigration, are seen as potentially inflationary. Economists are divided on how many rate cuts the Fed will make this year, with some predicting two cuts and others suggesting a potential rate increase.