The US Federal Reserve opted to maintain its benchmark interest rate on Wednesday, resisting President Donald Trump's call for immediate reductions. This marks the central bank's first policy decision since Trump's return to office.

In a unanimous vote, policymakers decided to keep rates within the 4.25% to 4.50% range, according to the Fed's official statement. The decision reflects ongoing confidence in the economy, with the Fed noting that "the unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid." However, inflation is still "somewhat elevated," remaining above the bank's long-term 2% target.

Trump pressures Fed to lower rates

Since reentering the White House on January 20, Trump has repeatedly pushed for rate cuts, arguing they would stimulate economic growth. Last week, he declared, "I'll demand that interest rates drop immediately," later adding that he would "put in a strong statement" if the central bank ignored his stance.

The Fed operates independently under a dual mandate from Congress, balancing inflation control with employment growth. It influences borrowing costs by adjusting its short-term lending rate, which impacts consumer and business loans.

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Analysts remain split on whether the Fed will ease monetary policy later this year, with Trump's economic agenda adding to the uncertainty. Policies on trade and immigration could have significant implications, though the extent of their economic impact remains unclear.

Federal Reserve Chair Jerome Powell is scheduled to speak at 2:30 pm (1930 GMT), where he is expected to face questions on inflation, the job market, and the influence of the Trump administration on future monetary policy.