There was no change to interest rates today at the meeting of the Federal Reserve, despite pressure by US President Donald Trump to lower them. Previous Fed Chair Jerome Powell refused to yield to pressure, and President Trump expected Kevin Warsh to follow his demands and lower interest rates.
However, interest rates are not changed by the Federal Reserve Chairman but rather by the Federal Reserve Board, where each board member has a vote on the matter. Jerome Powell is also still on the board. The decision was unanimous.
Economic growth projections for 2026 have been lowered from 2.4% to 2.2%. The dot-plot has gone even slightly higher at 3.75%–4.0% for 2026 with the median in March being at 3.4% in March. The new Federal Reserve Chairman also said that the recent high inflation readings justify the current interest rates.
The current Fed’s interest rates are at 3.5%-3.75%
Federal Reserve Chairman said that the Federal Reserve is committed to bring inflation at 2% to achieve price stability and full employment.
The Euro went down 1% in value against the US Dollar during the announcement.
You can read the Fed’s statement here. Dot-plot here. Press conference here.
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