The Federal Reserve of the United States communicated that the unemployment rate has remained stable at a low level in recent months, allowing labor market conditions to remain strong. Despite President Trump's pressure in his first week in office to reduce interest rates, the Fed decided to keep them unchanged.
Trump expressed his desire to lower interest rates immediately, although he acknowledged that he does not have the authority to terminate the terms of the Fed's executives. The U.S. economy appears stable, with a strong labor market and inflation expected to be contained, though it has not yet reached the 2% target.
The Fed is waiting to see the impact of Trump's proposals during his campaign, which include increasing citizens' purchasing power and policies that could influence prices, such as tariffs on imported goods, tax cuts, and immigration measures. The interest rate remains between 4.25% and 4.50%, following a higher period between 5.25% and 5.50%.
In the last meeting, the Federal Reserve decided to maintain the benchmark interest rates, resisting Trump's pressures. The president appointed Jerome Powell as head of the organization in 2017, and despite his criticisms, the Fed unanimously decided to keep rates unchanged. Although Trump challenged Powell by claiming he understands the issue better, the Fed's decisions are crucial for the economy.
The Fed's decision to maintain interest rates unchanged has generated a reaction in financial markets, with an increase in Treasury bond yields and downward pressure on stock indices. This could indicate a more cautious approach to interest rate cuts in the future, suggesting a more conservative stance in monetary policy.
