Federal Reserve holds interest rates steady
ABC News5 days
The Fed's decision to hold rates steady demonstrates prudent leadership amid complex economic conditions. Powell correctly balanced inflation management with labor market concerns, implementing 175 basis points of cuts since September 2024 while resisting political pressure for hasty action. The central bank's independence remains intact despite attacks, ensuring objective policy decisions serve the American people rather than short-term political demands.
The Fed's refusal to cut rates ignores clear disinflationary signals in a supply-side boom economy. Core inflation has dropped to 2.3% over three months, unit labor costs barely exceed 1%, and goods prices fall below the 2% target yet Powell clings to outdated models. The productivity-led expansion with falling energy costs demands lower rates, not stubborn resistance that rattles markets and keeps American bond rates unnecessarily high.
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