The U.S. central bank (Fed) is keeping the key interest rate unchanged in a range between 4,25 and 4,5 percent.

With this decision, the committee led by Fed Chair Jerome Powell continues its policy of inaction; the key rate has remained unchanged since December 2024, while other central banks have significantly lowered their rates during the same period.

With this decision, the Fed is accepting a conflict with U.S. President Donald Trump. In recent weeks, Trump had repeatedly urged the Fed to lower interest rates. Most recently, he even claimed that he understood interest rates better than the Fed Chair.

However, the Fed sees an increased risk of a renewed rise in inflation. This could be a reference to Trump’s trade tariff disputes.