**Article:**
The Federal Reserve has decided to maintain its current interest rates, opting not to lower them as President Trump has urged. The central bank’s decision keeps borrowing costs unchanged for consumers and businesses. Interest rates set by the Fed influence the cost of loans such as mortgages, car financing, and business credit, although actual rates also depend on market conditions.
This move signals the Fed’s cautious approach amid ongoing economic uncertainties. While the President has called for rate cuts to stimulate growth, the Federal Reserve appears focused on balancing inflation risks and economic stability. The decision reflects the central bank’s independence in setting monetary policy based on economic data rather than political pressure.
**Why this matters:**
Interest rates directly affect the cost of borrowing for households and companies, influencing spending and investment decisions. By keeping rates steady, the Federal Reserve aims to support sustainable economic growth without fueling inflation. The choice also highlights the Fed’s role as an independent institution, making policy decisions based on economic indicators rather than political considerations.
Source: NewsData