U.S. Fed freezes rates despite pressure from Trump

Despite continued pressure from U.S. President Donald Trump for a cut, the U.S. Fed kept rates unchanged, holding its benchmark rate steady in the 4-point-2-5 to 4-point-5 percent range.

However,.. two Fed governors called for a rate cut, marking the first time in three decades that two governors dissented on a decision.

Lee Seung-jae has more.

As widely anticipated, the U.S. Federal Reserve left its interest rates unchanged on Wednesday, holding its benchmark lending rate steady in the 4-point-2-5 to 4-point-5 percent range.

"Today, the Federal Open Market Committee decided to leave our policy interest rate unchanged. We believe that the current stance of monetary policy leaves us well-positioned to respond in a timely way to potential economic developments."

According to Powell, the U.S. Fed remains firmly focused on the dual mandate of maximum employment and stable prices, stressing that the economy is in a solid position despite ongoing uncertainty.

He added that the unemployment rate remains low, and that the labor market is considered at or near full employment, while inflation is running slightly above the Fed's 2-percent long-term target.

The latest decision also came despite recent public pressure from President Donald Trump urging a rate cut.

And earlier on Wednesday, Trump blamed Powell for the high interest rates, stressing that they hurt the American people.

"Each point that this gentleman keeps up costs us 365 billion dollars a year, think of that, one point, 365 billion dollars. If you bring it down a point, we save 365. We should be the lowest interest rate. And we're not. We're 38, number 38 because of the Fed. It's all because of the Fed. He's done a bad job."

In a rare move, two Republican-appointed Fed governors, Christopher Waller and Michelle Bowman dissented, signaling their preference for a rate cut of 25 basis points.

That marks the first time since 1993, that two Fed governors have dissented on the same rate decision.

Waller argued that while tariffs may temporarily push prices higher, the inflation impact will be short-lived, with levels returning to normal by next year.

The next FOMC meeting is slated for September, with many anticipating a rate cut during the sixth scheduled meeting of the year.

The rate freeze means the rate gap with the Bank of Korea stands at 1-point-7-5 to 2 percent.

Lee Seung-jae, Arirang News.