Fed Holds Rates as Trump Pressures for Deep Cuts

The Federal Reserve maintained its interest rates at current levels during Wednesday's meeting because of rising geopolitical tensions and President Donald Trump's demands for aggressive rate cuts.

The Federal Reserve maintained its benchmark interest rate at 4.25%-4.50% because policymakers assessed both tariff-related inflation risks and the ongoing conflict between Israel and Iran. During the morning Trump attacked Fed Chair Jerome Powell by calling him stupid while advocating for interest rates to be reduced by two percentage points.

Fed officials show no signs of being affected by political criticism because they base their decisions on global instability and persistent inflation rather than Trump's comments. The Federal Reserve faces a delicate situation because it needs to prevent premature rate cuts that could cause price increases while remaining alert to signs of economic slowing.

The Middle East tensions have caused oil prices to increase by 10% but they stay significantly lower than previous crisis peaks. Goldman Sachs analysts predict that crude oil prices could reach $100 per barrel during extreme market conditions.

The central bank will continue its data-driven approach to decision-making according to Fed watchers who dismiss presidential strong statements. The upcoming decision will depend on inflation data and worldwide events instead of White House statements.