Fed Holds Interest Rates Steady Amid 3% GDP Growth With Two Governors Dissenting

The U.S. Federal Reserve, led by Chair Jerome Powell, has decided to keep interest rates steady between 4.25% and 4.5%, despite pressure from President Donald Trump to lower them. Trump has criticized Powell, nicknaming him 'Too Late' and urging immediate rate cuts to help consumers refinance homes and stimulate the economy. The Fed cited ongoing uncertainty in government policies, including tariff impacts, and noted the economy's mixed signals, with moderate growth overall but a strong labor market and inflation still above the 2% target. Notably, two Fed governors appointed by President Trump, Christopher Waller and Michelle Bowman, dissented from the decision, advocating for a 0.25 percentage point rate cut — the first such dual dissent in over 30 years. Powell emphasized that while inflation has eased from recent highs, it remains elevated, and the Fed will continue to assess incoming data and economic risks before making further adjustments. The Fed's cautious stance reflects a balancing act between supporting economic growth and managing inflation amid evolving policy impacts.