The US Federal Reserve left the federal interest rate unchanged at 4.25%–4.50% for a fourth consecutive meeting in June 2025.
This may not be unconnected to the cautious stance it has taken following the economic impact of President Trump’s policies, particularly those related to tariffs, immigration, and taxation.
Along with the rate decision, the committee indicated, through its closely watched “dot plot,” that two cuts by the end of 2025 are still on the table. However, it lopped off one cut for both 2026 and 2027, putting the expected future rate cuts at four, or a full percentage point.
Trump Continues on Warpath
Earlier in the day, the president again slammed Fed Chair Jerome Powell and his colleagues for not easing. Trump said the fed funds rate should be at least two percentage points lower and derided Powell as “stupid” for not pushing the committee to cut.
The president and Powell have been at loggerheads since the president returned to the white house with the president not hiding his dislike fo powell while maintaining he would keep him until his tenure as federal reserves chair elapses in 2026.
