Federal Reserve Chairman Jerome Powell announced Wednesday that the Fed will not be cutting interest rates for the time being, shortly after receiving a quarterly report on the U.S. economy.
President Donald Trump has sought to pressure Powell for months to let more cash flow into the economy, arguing that inflation is low enough to warrant lower interest rates.
Powell’s decision followed a quarterly report from the Department of Commerce, which indicated a 3% annualized growth rate in gross domestic product—exceeding expectations.
“Inflation has come down a great deal, but has been running somewhat above our 2% longer-run objective. In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged,” said Powell at the press conference.
He added, “the risks of higher unemployment and higher inflation appear to have risen, and we believe that the current stance of monetary policy leaves us well-positioned to respond in a timely way to potential economic developments.”
Sen. Tommy Tuberville, R-Ala., who has been a harsh critic of Powell, wrote on the social media platform X, “FJP: FIRE JEROME POWELL.”
Trump has advocated lower interest rates, saying, “our country is booming, and the interest rates [are] a final, little notch,” during a visit last week to the Federal Reserve building.
Democrat detractors have accused the president of politicizing an institution.
Sen. Elizabeth Warren, D-Mass., despite having called for Powell to cut rates herself during the Biden administration, has accused Trump of being overbearing with Powell.
“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us then from any other two-bit dictatorship around the world,” she said in April.