Fed Keeps Rates Unchanged Amid White House Pressure

The Federal Reserve has kept its benchmark interest rate unchanged at 3.5% to 3.75%, despite calls from the White House for cuts and growing talk of a hike.

Fed Chairman Kevin Warsh said inflation remains elevated, above the Fed's goal of 2%, but expressed confidence in the economy's resilience, citing 'positive trends' and 'solid growth'. However, three officials dissented, favoring a quarter-point rate hike, which has sparked speculation about future rate increases.

President Donald Trump praised Warsh while criticizing the Fed board for not cutting rates, calling it a 'political board' that wants to keep rates up. Warsh reiterated that the central bank would not change its inflation target of 2%, and emphasized the need for price stability in the face of ongoing global uncertainty.