The Federal Reserve has once again left its benchmark interest rate unchanged, maintaining the range at 4.25% to 4.5%. This marks the fifth consecutive policy meeting where rates have stayed steady, reflecting the central bank’s ongoing “wait-and-see” approach. The Federal Open Market Committee (FOMC) cited persistent economic uncertainty and the need to closely monitor inflation trends and labor market conditions as key reasons behind their decision.

President Trump did not mince words in his criticism of Fed Chair Jerome Powell following the announcement, calling Powell “too angry, too stupid” and reiterating his ongoing displeasure with the central bank’s policy choices. Trump has repeatedly pushed for deeper rate cuts, arguing they are necessary to energize the economy amid the impact of new tariffs and global challenges. Powell, however, has stressed that decisions are driven by economic data and the Fed’s dual mandate of stable prices and maximum employment.

While most FOMC members supported the decision to hold rates, there was rare dissent within the board: two Fed Governors advocated for an immediate rate cut, underlining the pressures and differing perspectives within the central bank’s leadership. It is the first time in decades that multiple members have publicly disagreed with the chair.

Markets responded with cautious optimism, holding out hope that the Fed might ease rates at its next policy meeting in September. For now, the central bank appears committed to a careful course, aiming to balance growth while keeping inflation in check. Powell remains focused on his goal of handing over a healthy economy to his successor when his term ends next year, regardless of mounting political pressure.

As these debates continue, investors and borrowers alike will be watching closely for any shifts in the Fed’s stance in the months ahead.