The Brief

The Federal Reserve voted to leave its short-term interest rate unchanged on Wednesday for the fifth straight meeting as expected, despite mounting pressure from President Donald Trump to lower them and dissent from two Fed governors appointed by Trump.

The current short-term interest rate is 4.3% .

The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies.

Powell has said that tariffs could push up inflation, and that the central bank wants to see how the economy evolves in the coming months before reducing its short-term rate.

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