Fed Holds Steady as Trump's Interest Rate Demands Fall on Deaf Ears
The US Federal Reserve has kept interest rates steady for the second time under Chairman Kevin Warsh's tenure, ignoring calls from President Donald Trump to cut them.
On Wednesday, July 29, 2026, the Fed maintained the overnight benchmark interest rate in the range of 3.50% to 3.75%, rejecting Trump's demand for lower rates.
In a statement, Trump said that other countries were paying lower interest rates and the US should follow suit, claiming it would put the country at an economic disadvantage.
The Fed's decision marks a significant break from Trump's public pressure on the central bank to lower interest rates. Warsh had removed the previous Fed statement regarding interest rates at the June meeting, adopting a revised format that only specifies the interest rate decision and reaffirms the intention to maintain 'sufficient reserves in the banking system.'