Federal Reserve keeps interest rates unchanged despite political pressure.

The United States Federal Reserve has decided to keep interest rates steady at 3.5 to 3.75 percent, defying President Donald Trump’s call for more aggressive rate cuts. The Fed aims to achieve maximum employment and 2 percent inflation in the long run, despite elevated economic uncertainty. The decision was widely expected, with two rate cuts predicted for 2026, and comes amid signs of stabilization in the labor market. Trump’s pressure on the Fed to cut rates has raised concerns about central bank independence, with global central banks closely monitoring the situation.

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