Fed holds rates steady despite pressure from Trump

The U.S. Federal Reserve kept its benchmark interest rate unchanged at 3.5%–3.75% following its Jan. 27–28 policy meeting, the central bank said on Wednesday.

The Fed cut rates by 25 basis points at its previous meeting.

In a statement, the central bank said economic activity continued to expand at a solid pace, job gains remained modest and the unemployment rate showed signs of stabilisation. Inflation, however, remained somewhat elevated. The Fed said it stood ready to adjust monetary policy should risks emerge that could hinder the achievement of its goals.

The decision was in line with market expectations, although two policymakers — Steven Miran and Christopher Waller — dissented in favour of a rate cut.

The move comes amid continued pressure from U.S. President Donald Trump, who has repeatedly urged Fed Chair Jerome Powell to cut interest rates. Powell’s term as chair expires in May 2026.