The Board of Governors of the Federal Reserve System of the United States, contrary to expectations, decided not to reduce the discount rate and to keep it at the current level of 4.25-4.5%. This was reported by the BBC, writes UNN.
Details
As the publication notes, this contradicts the demands of President Donald Trump, who has long stated the need to lower the interest rate at which loans are issued. The White House believes that this will complement the picture of economic growth, the key to which is allegedly the increased import tariffs introduced by Trump.
However, tariffs are the main factor that convinces the head of the central bank, Jerome Powell, to resist the Republican's wishes in every possible way. According to the financier, there is no need to rush, but rather to wait for certainty regarding economic indicators amid the chaos caused by the tariffs.
However, the current Fed decision had its own peculiarity: for the first time in 30 years, two members of the Board did not support the majority's position and voted to lower the rate.