The US Central Bank has re -unchanged for the cost of low borrowing despite the pressure of President Donald Trump.
The decision, which was widely expected, left between 4.25% and 4.5%, the major lending rate of the Federal Reserve, where it stands since December.
But in an abnormal dissatisfaction, two members of the board voted against the plan, stating that they prefer to cut, which is a sign that support for low rates may be widespread.
This vote came when Trump’s tariff continued to debate on new economic figures on what effect the tariff of Trump would have on the world’s largest economy.
The latest data showed that the US economy increased at an annual rate of 3% in the April-June period, after shrinking in the first three months of the year, the Department of Commerce said.
But the large-to-the-to-subcate rebound was mainly inspired by a sharp decline in imports as Trump’s tariff was kicked.
“Forget about the headline number,” Wellington-Altus Private Wealth’s main market strategist Jim Thorn told the BBC’s initial bell. “The underlying data is suggesting an economy that is losing speed.”
The fed usually reduces interest rates when the economy is struggling and raises them if the price increase in price starts to grow very quickly.
Fed’s policy makers have long indicated that they were expected to reduce the borrowing costs at some point this year, following the footsteps of other central banks in the UK, which has cut interest rates.
But they have once been overcome over the time over the anticipated, concerned about that tariffs and other new policies, including tax cuts, will affect the economy.
Inflation increases the speed of value, it is also above the 2% target of the Fed, lasting up to 2.7% in June.
Wednesday’s decision marked for the first time in more than 30 years that two fed policy makers have voted against the majority.
Federal Reserve Chairman Jerome Powell has argued that carefully leads to understanding when the job market remains stable and tariffs are widely expected to increase prices.
But there are risks to delay, as tariffs also often slow growth, kill and kill.
Announcing his decision, Fed nodded the development figures, given that the development was “moderated” in the first half of the year, despite swinging in the business affecting the data.
At a press conference following the verdict, Mr. Powell offered some clues whether the rate could be cut in September, as the financial markets are rapidly expecting, he said that he saw very few evidence that the interest rates were “unfairly” withdrawing the economy.
He also said that the entire effect of the tariff was to “go a long way to go” before it became clear.
The city’s chief American economist Andrew Hollenhorst said that policy makers would be looking closely to the job market for losses, where the unemployment rate is 4.1% lower but has weakened employment generation.
“There is a danger of waiting, you wait very long and the cracks you are seeing in the labor market really get more,” he said.
Trump has dismissed concerns that their tariffs can increase prices or weigh on growth.
He has attacked the Fed to reduce the costs of borrowing very slowly on the fed, the way he focuses on his argument at low interest rates, he will save the government money on loan payment and promote the housing market.
In his push for rate cuts, Trump has played with the idea of firing Powell, although he recently said that he did not think such a step – a big break with an example – would be necessary.
“This can be too late because the expression goes, but I believe he is going to do the right thing,” he told reporters after visiting a Fed Construction Project last week that the White House has accused Powell of mismanagement.
On Wednesday, after the report on the Commerce Department’s Gross Domestic Product (GDP), he addressed his call for low rates, addressing Fed Chairman Jerome Powell, which he named Mr. to Late Late.
“Better than expected!” He wrote on social media. “It’s too late” Now the rate should be low. No inflation! Let people buy, and refinance, their homes! ”
Powell defended the role of Fed in the housing market, given that it does not determine the mortgage rates and indicates other factors – including the US government borrowing costs – shaping those rates.