PREVIEW

Fed Holds Rates as Powell Defends Independence Amid Trump Pressure. The U.S. Federal Reserve has decided to keep interest rates unchanged, holding its key rate between 3.5% and 3.75%, as Chair Jerome Powell delivered a strong defense of central bank independence. Powell said the U.S. economy continues to grow at a solid pace, giving policymakers confidence to pause. The decision comes amid escalating pressure from President Donald Trump, who has repeatedly attacked Powell for not cutting rates faster. Powell declined to comment on a federal investigation tied to his past testimony, but warned that once a central bank loses independence, its credibility is extremely hard to rebuild. While two Fed officials dissented in favor of rate cuts, most policymakers pointed to improving economic data, a stabilizing job market, and easing tensions between inflation and employment. Powell stressed that interest-rate decisions must stay free from political influence, calling central bank independence essential to economic stability—even as his term as chair nears its end.
Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT