Federal Reserve holds interest rates steady amid political scrutiny
This decision comes at *** moment of growing pressure on the Federal Reserve. President Donald Trump has publicly criticized the institution, and there are questions about its future independence. That tension now colliding with the central bank that says it’s not yet ready to cut rates. As President Trump touts the economy as booming, just this morning as I’m running out, I see the S&P 500 hit 7000 for the first time ever. The Federal Reserve hitting pause today, holding interest rates steady. Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated. If you were thinking about buying *** car next week, what the Fed does today shouldn’t matter. It’s *** decision likely to find disapproval in the White House. It’s too late. Jerome, too late, pal. He’s too late. This was the first rate decision since the Justice Department launched an investigation into the Fed chairman and the central bank’s renovation project. In *** separate case, the Supreme Court is weighing whether President Trump can fire one of the Fed decision makers, Governor Lisa Cook. Chairman Jerome Powell said despite the political pressure, the central bank remains independent. We at the Fed will continue to do our jobs with objectivity, integrity, and *** deep commitment to serve the American people. Jerome Powell’s term as Federal Reserve Chairman ends in May. The president has yet to announce who he’d like to see as the successor. In Washington, I’m Christopher Seles.
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Federal Reserve holds interest rates steady amid political scrutiny
The Federal Reserve kept rates unchanged amid political pressure and criticism from Trump.
Updated: 5:09 PM CST Jan 28, 2026
The Federal Reserve has decided to keep interest rates unchanged, maintaining current borrowing costs for Americans despite sustained political pressure on the central bank.Federal Reserve Chairman Jerome Powell, explaining the central bank’s cautious approach, said, “inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated.”“No rate cut today means relatively no immediate impact for consumers. If you were thinking about buying a car or a home next week, what the Fed did doesn’t really change that,” Stephen Kates of Bankrate.com said.The decision comes as President Donald Trump continues to highlight strong stock-market performance while pressing the Fed to cut rates more aggressively. “Just this morning, I saw the S&P 500 hit 7,000 for the first time ever. So I say America is back,” Trump said.Beyond the policy decision itself, the Fed is facing mounting political and legal scrutiny. The Justice Department has taken steps to examine issues related to Powell’s testimony about a costly renovation project at the Fed’s headquarters. Powell has denied any wrongdoing.Separately, the U.S. Supreme Court has heard arguments in a case stemming from President Trump’s attempt to remove Federal Reserve governor Lisa Cook. The case could have broad implications for the independence of the Federal Reserve.Despite the pressure, Powell said the central bank remains focused on its mission. “We at the Federal Reserve continue to do our jobs with objectivity, integrity, and a deep commitment to serve the American people,” he said.As Powell’s term as Fed chair expires later this year, President Trump has not yet named a successor.Meanwhile, the administration Wednesday also promoted so-called “Trump accounts,” a proposed government-backed savings program for children. Under the plan, babies born between 2025 and 2028 would receive a $1,000 starter deposit, with families able to contribute additional funds annually. Parents of older children could also open accounts without the initial government contribution. The funds would largely be restricted until the child turns 18, and the proposal does not include income limits.For more coverage from the Washington News Bureau:
The Federal Reserve has decided to keep interest rates unchanged, maintaining current borrowing costs for Americans despite sustained political pressure on the central bank.
Federal Reserve Chairman Jerome Powell, explaining the central bank’s cautious approach, said, “inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated.”
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“No rate cut today means relatively no immediate impact for consumers. If you were thinking about buying a car or a home next week, what the Fed did doesn’t really change that,” Stephen Kates of Bankrate.com said.
The decision comes as President Donald Trump continues to highlight strong stock-market performance while pressing the Fed to cut rates more aggressively. “Just this morning, I saw the S&P 500 hit 7,000 for the first time ever. So I say America is back,” Trump said.
Beyond the policy decision itself, the Fed is facing mounting political and legal scrutiny.
The Justice Department has taken steps to examine issues related to Powell’s testimony about a costly renovation project at the Fed’s headquarters. Powell has denied any wrongdoing.
Separately, the U.S. Supreme Court has heard arguments in a case stemming from President Trump’s attempt to remove Federal Reserve governor Lisa Cook. The case could have broad implications for the independence of the Federal Reserve.
Despite the pressure, Powell said the central bank remains focused on its mission. “We at the Federal Reserve continue to do our jobs with objectivity, integrity, and a deep commitment to serve the American people,” he said.
As Powell’s term as Fed chair expires later this year, President Trump has not yet named a successor.
Meanwhile, the administration Wednesday also promoted so-called “Trump accounts,” a proposed government-backed savings program for children.
Under the plan, babies born between 2025 and 2028 would receive a $1,000 starter deposit, with families able to contribute additional funds annually. Parents of older children could also open accounts without the initial government contribution. The funds would largely be restricted until the child turns 18, and the proposal does not include income limits.
For more coverage from the Washington News Bureau: