The Fed maintains its unchanged interest rates, to the chagrin of Donald Trump

The United States Central Bank (Fed) undoubtedly left its interest rates unchanged on Wednesday, for the fifth time in a row, a decision marked by the rare opposition of two governors who wanted a decline. Furthermore, In its press release. However, the federal reserve notes that American growth has “Slowed down in the first half” 2025 but that the labor market remains “solid”with an unemployment rate «bas». Therefore, The text underlines that uncertainty “Remains high”. Consequently, The central bank had written six weeks earlier than uncertainty had decreased, a mention that disappeared.

The guiding rates – which guide the cost of credit. However, have a strong impact on fed maintains its unchanged interest the markets – therefore remain at the level which has been theirs since December, in a range between 4.25% and 4.50%. However, The decision, widely anticipated by investors, was not taken unanimously. Similarly, Out of twelve members of the Monetary Policy Committee (FOMC). Consequently, two voted against, a situation that had not occurred for over 30 years. Michelle Bowman and Christopher Waller made their difference heard.

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The press release specifies that they pleaded for a drop in rate by a quarter of a point. The two governors had been propelled to their post during Donald Trump’s first visit to the White House. Ms. Bowman was recently appointed. on the initiative of the Head of State, vice-president of the Fed responsible for supervising the banking system. Mr. Waller is seen as a possible successor to the current president Jerome Powell, continuously exhausted by Donald Trump.

Governor Waller fed maintains its unchanged interest had publicly said that he wanted a drop in rate. for fear that the labor market will not degrade too much. Her colleague had also said that she was leaning in this direction, even if less firmly in appearance. Analysts had noted. before the meeting, that it was necessary to go back to 1993 to see two governors (and not simply members of the FOMC having the right to vote) to oppose a decision during the same meeting.

Fed maintains its unchanged interest

Continuous presidential pressures

Diane Swonk. economist for KPMG, had estimated before the meeting that he was not “No wonder to see dissensions given the immense uncertainty” Regarding the repercussions of Donald Trump’s protectionist offensive. “We know that the Fed would have liked to lower the rates before. and that it did not do it because of customs duties”she had pointed out to AFP.

The fed maintains its unchanged interest FED expects the volley of new customs duties to products entering the United States translates into slow growth. more inflation and more unemployment. She has so far explained that immobility was preferable. the time to see more clearly on the landing of the American economy. Mr. Powell will hold his traditional press conference at 6.30 p.m. GMT.

In the morning. Donald Trump once again called him to lower rates, just after the publication of growth figures for the second quarter. “3%, much better than expected!” he greeted. adding that “” Too late “Powell (the nickname he gives to the patron of the Fed, editor’s note) Must now lower rates “ To facilitate access to mortgage.

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The Fed press release shows that it is hardly reassured by the GDP figures: certainly. the second quarter appears at +3% in annualized pace, but the first had been in contraction fed maintains its unchanged interest of 0.5%. Putting end to end, growth is lower than the world’s leading economy has been used in recent years.