The Federal Reserve has decided to hold interest rates steady in the face of stubborn inflation and mounting political pressure from former President Donald Trump, who has called for lower borrowing costs to stimulate economic growth.
Jerome Powell, the Fed Chair, emphasizes the central bank’s independence and addresses concerns about a criminal investigation into his leadership, asserting that inflation remains elevated but showing signs of improvement in the job market.
Despite Trump's vocal criticisms and pressure, Powell sidesteps personal attacks during press conferences, focusing instead on economic data that reflects a stable job market and reduced inflation risks.
Market reactions to the Fed's decision reveal U.S. stocks near all-time highs and the dollar stabilizing, though Trump’s comments about the dollar being "great" have sparked debates over its value, leading to fluctuations in investor confidence.
In the backdrop of these developments, gold prices have soared to record highs, crossing $5,300 per ounce, as investors seek refuge in safe-haven assets amid geopolitical uncertainty and economic instability.
The intersection of monetary policy and political dynamics highlights the ongoing struggle for the Federal Reserve to operate independently, navigating the turbulent waters of economic change while resisting external political influences.
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