The Federal Reserve kept its benchmark interest rate unchanged on Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed tries to gauge where inflation is headed and what policies President Donald Trump might take.
In a statement, the Fed said the job market is “solid,” noting that the unemployment rate “has stabilized at a low level in recent months.” The Fed also appeared to tighten its assessment of inflation, saying it “remains somewhat elevated.” Both a healthier job market and stronger inflation would typically imply fewer Fed rate cuts in the coming months.
In a press conference Wednesday, Fed Chairman Jerome Powell largely deflected questions about recent comments from President Trump, including one from last week, when Trump said he would lower oil prices and then “demand” lower interest rates. He also said he would talk to Powell about it.
“I’m not going to comment or comment on anything the president said,” Powell said. Asked whether Trump had conveyed his desire to cut rates directly to Powell, the Fed chairman said he had "not had any contact."