US Federal Reserve holds interest rates steady amid inflation risks and political pressure

The US Federal Reserve has decided to keep interest rates unchanged, resisting opposing pressures from rising inflation and demands from President Donald Trump.

In its second monetary policy decision since Kevin Warsh assumed leadership of the central bank, officials opted against initiating the first interest rate hike in three years. Policymakers faced escalating inflationary headwinds linked to spending in the artificial intelligence sector, newly introduced tariffs, and broader geopolitical instability surrounding the ongoing conflict in Iran.

Despite external political demands and persistent economic volatility, the central bank chose to maintain its current stance to navigate price pressures while supporting stability.

Sources: La Vanguardia