On May 7, 2025, the Federal Reserve announced its decision to maintain the benchmark interest rate within the range of 4.25% to 4.5%, citing concerns over rising unemployment and inflation pressures. Yahoo Finance
Federal Reserve officials, including Richmond Fed President Tom Barkin and New York Fed President John Williams, noted signs of a slowing U.S. economy, attributing uncertainty to President Trump’s tariffs, which have led some businesses to freeze hiring and reduce discretionary spending.
Despite political pressure from President Trump to cut interest rates to stimulate the economy, the Fed emphasized the importance of maintaining price stability and keeping inflation expectations anchored.
The central bank’s cautious approach reflects its dual mandate to promote maximum employment and stable prices, as it navigates the complexities of global supply chain disruptions and domestic economic challenges.
