US Fed Holds Rates Steady Amid Trump Pressure, Cites Robust Growth

• The US Federal Reserve maintained interest rates at 3.50-3.75% in its first policy meeting of the year, despite pressure from President Donald Trump for cuts.
• The decision, supported by a 10-2 vote, was based on robust economic growth and signs of stabilization in the unemployment rate.
• Two Fed governors, Stephen Miran and Christopher Waller, dissented, advocating for a quarter-percentage-point rate cut.
• The Fed had previously made three consecutive quarter-point cuts due to concerns about the cooling jobs market, but solid GDP growth and stubborn inflation led to a pause.
• President Trump has intensified pressure on the Fed, including targeting officials and investigating Chairman Jerome Powell, raising concerns about the bank's independence.

Why It Matters: The US Fed held interest rates steady, resisting political pressure from Trump, citing strong economic indicators.