NATIONAL NEWS – Trump furious as Fed holds rates steady, signals no September cut despite political pressure

Ananya Roy, News Writer

The Federal Reserve left interest rates unchanged on Wednesday and avoided signaling any clear path to rate cuts, defying pressure from the White House and tempering investor expectations for a September easing. The decision, made in a split vote with dissent from two Trump-appointed governors, keeps the Fed’s benchmark rate at 4.25%–4.50%. Chair Jerome Powell emphasized a data-dependent approach, stating, “We have made no decisions about September,” and noted that the economy remains resilient despite “modestly restrictive” interest rates.

Markets reacted swiftly. Treasury yields and the dollar climbed, while stocks turned lower. Fed funds futures now show just a 46% chance of a September rate cut, down from 65% a day earlier. The Russell 2000 small-cap index fell 0.47%, underperforming the S&P 500. While investors had hoped for a dovish shift, analysts say the Fed’s patience will leave markets watching closely for the next two months of inflation and jobs data. Powell’s stance reflects caution, not commitment—leaving the door open but no path cleared.