The Fed begins monetary policy meeting with expectation to maintain interest rates

The Fed started a two-day monetary policy meeting on Tuesday in which it is expected that the U.S. central bank will maintain interest rates despite pressures from President Donald Trump to cut them.

The Federal Reserve (Fed) started a two-day monetary policy meeting on Tuesday in which it is expected that the U.S. central bank will maintain interest rates despite pressures from President Donald Trump to cut them.

Fed officials are closely monitoring the effects of Trump's tariffs in order to assess their impact on inflation and the labor market.

Although the Fed has begun to lower benchmark rates from their recent highs as inflation has moderated (which had surged during the pandemic), it has kept rates stable this year due to the uncertainty caused in the economy by Trump's tariffs.

Interest rates remain between 4.25% and 4.50%, but the president has repeatedly urged the Fed to cut them by one percentage point.