The key borrowing rate remain unchanged in the 4.25% to 4.5% range, in line with market expectations.
The Federal Reserve on Wednesday kept the key borrowing rate unchanged, maintaining the federal funds rate in the 4.25% to 4.5% range, in line with market expectations.
U.S. President Donald Trump resumed his public criticism of Fed Chair Jerome Powell, calling him “Too Late” again while demanding a rate cut to ease home financing.
““Too Late” MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!” he said, referring to Powell. President Trump has previously said Powell’s status quo stance on interest rates was costing the U.S. $1 trillion a year.
Meanwhile, the Federal Open Market Committee (FOMC) said that recent indicators point to a moderation in the growth of economic activity in the first half of the year.
“The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” it said.
The FOMC voted 9-2 to keep rates unchanged, with Governors Christopher Waller and Michelle Bowman voicing dissent and calling for a 25 basis point cut.
Earlier in the day, Treasury Secretary Scott Bessent remarked that while he expects the Fed not to cut rates today, he expects a “little bit of imagination” from the central bank.
Following the policy decision, benchmark indices continued to trade in the green.
At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.16%, while the Invesco QQQ Trust (QQQ) gained 0.33%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘extremely bullish’ territory.
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