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Fed Holds Rates Steady Amid Trump’s Push for Cuts, Creating Market Tension

Fed Holds Rates Steady Amid Trump’s Push for Cuts, Creating Market Tension

Published:
2025-05-05 06:26:02
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The Federal Reserve maintains its benchmark rate at 4.25%-4.50%, resisting pressure from former President Donald Trump for immediate cuts. This standoff highlights the clash between monetary policy independence and political demands, with markets bracing for volatility ahead of this week’s FOMC meeting.

Trump argues tariff measures alone can stimulate growth, while Chair Powell insists on data-dependent decision-making. The impasse comes as trade tensions exacerbate inflationary pressures, dampening consumer spending and labor market momentum in the near term.

|Square

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