At the meeting of the Federal Open Market Committee (FOMC) on May 6–7, 2025, the Federal Reserve decided to maintain the benchmark interest rate in the range of 4.25% to 4.5%. This decision was made despite pressure from President Donald Trump to lower interest rates, amid rising risks of stagflation—a situation where high inflation occurs alongside slowing economic growth and rising unemployment. WSJ+11 New York Post+11 Latest news & breaking headlines+11

Fed Chair Jerome Powell emphasized that although the economy and labor market remain strong, growing uncertainty, particularly due to Trump's administration's tariff policies, prompted the central bank to take a cautious stance and wait for further economic data before making policy changes.