People and businesses in the US have faced a whirlwind of policy change in recent months. But one thing has remained fixed: borrowing costs set by the US central bank.
The Federal Reserve stuck with that strategy on Wednesday, voting to leave its key interest rate unchanged.
The decision marked the fourth in a row without action, keeping the bank’s influential lending rate hovering around 4.3%, where it has stood since December.
Bank leaders have said they want more information about the extent to which tariffs and other policy changes will drive up prices, slow the US economy – or both – before changing course.
Typically, the Fed lowers borrowing costs if it believes the economy is struggling and raises them if prices start to rise too quickly.
Inflation, the pace of price increases, remains above the Fed’s 2% target, coming in at 2.4% in May.
But President Donald Trump has repeatedly called on the Fed to cut interest rates, arguing, in part, that the problem has faded.
In remarks on Wednesday ahead of the Fed’s decision, Trump repeated his criticism of Fed chair Jerome Powell, calling him “stupid” and speculating about the end of his term.
The European Central Bank has cut interest rates eight times since last June. The Bank of England cut borrowing costs last month but is expected to hold rates steady this week.
Fed officials, who are empowered to make policy independent of the White House, have said they will make decisions based on the data.
Fed interest rate decisions determine what it charges banks for short-term loans.
That rate in turn has significant influence over borrowing costs across the economy, informing what regular banks end up charging households and businesses for mortgages and other kinds of loans.
At 4.3%, the Fed’s benchmark interest rate remains markedly higher than it was between 2008 and 2022, when the bank started to hike rates in response to rising prices.
But it is roughly a percentage point lower than where it stood last year.