The U.S. Federal Reserve announced on Wednesday that it is not lowering interest rates, keeping them steady at 4.25 to 4.5 percent.
“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the Federal Open Market Committee (FOMC) said in a press release. “The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
Why It Matters
The Federal Reserve last cut interest rates in December. Despite increasing pressure from President Donald Trump, Chair Jerome Powell has refused to lower them further.
In comments at the White House on Wednesday, Trump asked about the possibility of appointing himself to chair the Federal Reserve.
“Am I allowed to appoint myself at the Fed?” he said. “I’d do a much better job than these people.”
What To Know
The FOMC, which is responsible for setting interest rates, identified goals of maximum employment and a 2 percent inflation rate in its statement. The committee said it decided to maintain the federal funds rate “in support of its goals.”
“If he’s worried about inflation, that’s OK, I understand that,” Trump said in comments to reporters Wednesday, referring to Powell. “I don’t think there’s going to be any, so far there hasn’t.”
While Powell leads the FOMC, he is one of more than a dozen central bank officials who vote on the bank’s interest rate. Powell’s term as chair of the Federal Reserve ends next year.
Vice President JD Vance also criticized the Federal Reserve for not lowering rates ahead of the decision.
“The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vane wrote on X, formerly Twitter, on June 11.
AP Photo/Mark Schiefelbein
What People Are Saying
President Donald Trump, referring to Fed Chair Jerome Powell in comments to reporters on Wednesday: “He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”
Jerome Powell, at a press conference on Wednesday: “What everyone on the FOMC wants is a good solid American economy with a strong labor market and price stability. That’s what we want. We think our policy is well positioned to right now deliver that and to be able to respond in a timely way as the data lead us around.”
What Happens Next
The FOMC said it will continue to monitor incoming information to assess the appropriate stance on monetary policy going forward. The committee stated that it would be prepared to adjust monetary policy as necessary if risks emerge that could interfere with its objectives.
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Update 6/18/25, 3:54 p.m. ET: This article was updated with additional information.
