Fed Holds Rates Steady Amid Inflation Concerns; Trump Pressures for Cuts

• The Federal Reserve maintained key interest rates at 3.50%-3.75% in its first 2026 meeting, citing high inflation and robust economic growth.
• The Fed's statement offered no clear timeline for future rate cuts, indicating decisions depend on economic data and outlook.
• Inflation remains elevated, while the labor market shows signs of stability; the PCE Price Index is above the Fed's 2% target.
• US President Trump has consistently pressured the Fed for rate cuts, stating the new Fed chief would make significant reductions.
• Two Fed members dissented, advocating for a quarter-point rate cut, while the majority voted to keep rates stable.

Why It Matters: The Fed kept rates stable due to inflation and strong economy, despite political pressure for cuts.