Fed Holds Interest Rate Steady Amid Trump's Calls for Lower Borrowing Costs

The Federal Reserve held its benchmark interest rate steady at 3.5-3.75% in a 9-3 decision, despite President Donald Trump's calls for lower borrowing costs. The rate has been paused five consecutive times.

Fed Chair Kevin Warsh reaffirmed the central bank's 2% inflation target and said the US economy is showing 'impressive resilience' despite recent shocks.

'For some households, businesses and market professionals, five years of high inflation have left a mistaken impression, that's hard to shake, that the Fed's implicit inflation target was somehow above 2 percent,' Warsh said. He emphasized that there is no soft inflation target and reiterated that it remains at 2%.

The rate decision leaves the gap between the key interest rates of Korea and the US at up to 1 percentage point.