1st LD: U.S. Fed keeps interest rates unchanged despite pressure from Trump administration


NEW YORK, July 30 (Xinhua) -- The U.S. Federal Reserve on Wednesday kept the target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent, though it faces stark pressure and harsh criticism from the Trump administration.

"Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," said a statement by the Federal Open Market Committee (FOMC).

Uncertainty about the economic outlook remains elevated, said the statement.

The U.S. economy expanded at an annualized rate of 3 percent in the second quarter, compared with a contraction of 0.5 percent in the first quarter, according to data released Wednesday by the U.S. Commerce Department.

The FOMC added that it is "strongly committed to supporting maximum employment and returning inflation to its 2 percent objective."

U.S. consumer price index rose by 2.7 percent in June compared to a year earlier and saw the largest increase since February, which is seen as the start of tariff-driven inflation.

Notably, among the 12 voting members of the FOMC, two voted for a cut in the benchmark interest rate by 25 basis points, while a Fed board member did not cast a vote.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In World

Italy removes emphatic 'Yes!' from national anthem
Germany deports criminal to Syria as pressure mounts on migration
Russia's Lavrov to meet Syrian counterpart for talks in Moscow, TASS cites foreign ministry
Jared Kushner's withdrawal from Serbia will hurt investment, official says
Syria detains prominent American Islamist journalist, sources say
Zelenskiy says several draft documents prepared after 'productive' U.S. talks
US Justice Department releases new tranche of Epstein files
Greenland's PM 'sad' about Trump's renewed interest in acquiring island
Sinkholes in Turkey's agricultural heartland fuel farmers' concerns
US seeks to cancel thousands of asylum cases, CBS News reports

Others Also Read