Economic conditions & trends

US Fed Holds Rates Steady Amid Tariff Concerns

Published JUN 19 2025

Story

Above: Jerome Powell at the Federal Reserve on June 18, 2025, in Washington, DC. Image credit: Chen Mengtong/China News Service/VCG via Getty Images

The Facts

The U.S. Federal Reserve maintained interest rates at 4.25% to 4.5% on Wednesday, marking the fourth consecutive meeting without a rate change, despite President Donald Trump calling Fed Chair Jerome Powell "stupid" hours before the decision and demanding rate cuts of at least two percentage points.
GB News
guardian
Fed officials revised their economic projections downward, cutting GDP growth forecasts from 1.7% to 1.4% for 2025 and raising inflation expectations from 2.7% to 3% for the year, citing concerns that Trump's tariff policies would push up consumer prices in the coming months.
The Telegraph
EuroNews
BBC News
The Fed raised its unemployment forecast from 4.4% to 4.5% for 2025, stressing that economic uncertainty "has diminished but remains elevated," with Powell expressing concerns about potential cuts to U.S. statistical agencies that could affect economic data collection.
www.ft.com
guardian
The Hill
Previously, Trump compared the Fed's moves to those of other key central banks that have reduced interest rates in recent times and referred to Powell as "Too Late." He said there won't be any inflation caused by lower rates, something that he believes Powell is worried about.
The New York Times
FOX News
Trump escalated his criticism of Powell on Wednesday, calling him "a political guy who's not a smart person" and suggesting he might "appoint myself" to chair the Federal Reserve. Meanwhile, Vice President J.D. Vance labeled the Fed's stance "monetary malpractice."
Newsweek
FOX News
The Federal Open Market Committee's dot plot projections showed policymakers remain divided on rate cuts, with 10 members expecting two or more quarter-point cuts this year while seven forecast no rate reductions at all for 2025.
Newsweek
www.ft.com

Sources Split

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The Spin

Anti-Trump narrative

Trump's relentless attacks on Powell have created an impossible trap: any rate cut now would appear as a shameful capitulation to White House pressure, devastating the Fed's credibility and terrifying bond investors. Powell must prove the Fed's independence remains sacred, or risk investors fleeing en masse from a compromised central bank.

Market Watch

Wsj

Pro-Trump narrative

Trump's fury is justified: With inflation tamed at 2.4%, oil prices plummeting, and tariffs enriching America, Powell's stubborn refusal to cut rates from their punishing 4.5% stranglehold is economic sabotage. The government incurs hundreds of billions of dollars in annual debt servicing, while Powell's reckless obstinacy crushes borrowers, stifling growth.

Bloomberg.com

Firstpost

Government-critical narrative

Trump's reckless assault on Fed independence threatens to topple a cornerstone of global stability. His intimidation campaigns are weakening the dollar, driving gold prices higher, and spooking investors worldwide. By demanding White House control over monetary policy, Trump risks rendering U.S. economic credibility into rubble, triggering global chaos.