The Federal Reserve has decided to keep interest rates steady at 3.5% to 3.75%, signaling confidence in economic stability despite intense political pressure from President Trump, who advocates for rate cuts to stimulate growth.
Fed Chair Jerome Powell is navigating a precarious balance, facing a criminal investigation linked to Trump’s dissatisfaction with monetary policy, which adds a layer of complexity to the central bank's independence.
The decision reflects a cautious approach amidst persistent inflation and signs of a stabilizing job market, highlighting the Fed's commitment to careful economic management.
In response to the Fed's decision, U.S. stock markets are thriving, hovering near all-time highs, indicating investor optimism in the central bank's strategy.
The U.S. dollar has hit a four-year low against major currencies, prompting a surge in gold prices, which soared past $5,300 per ounce as investors flocked to safe havens amid economic uncertainty.
As analysts speculate about future rate cuts in the face of inflationary pressures, the situation underscores the ongoing tension between economic policy and political influence in Washington.
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