Federal Reserve holds interest rates steady
ABC News2 days
Fed Holds Rates Steady at 3.5%-3.75% Amid Inflation Concerns
Is the Fed showing prudent leadership by holding rates or ignoring clear signals that demand cuts?
Above: U.S. Federal Reserve Chair Jerome Powell at a press conference in Washington on Jan. 28. Image credit: Chen Mengtong/China News Service/VCG/Getty Images
The Spin
Anti-Trump narrative
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.
Pro-Trump narrative
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over three months, unit labor costs barely exceed 1%, and goods prices fall below the 2% target yet Powell clings to outdated models.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 costs unnecessarily high.
Metaculus Prediction
Public Figures
The Controversies
Go Deeper
Articles on this story
© 2026 Improve the News Foundation. All rights reserved.Version 6.18.0
© 2026 Improve the News Foundation.
All rights reserved.
Version 6.18.0