"The Federal Reserve declined to cut the U.S. interest rate at the Wednesday meeting of its board of governors, keeping the benchmark at 3.5-3.75 percent. Federal Reserve Chair Jerome Powell noted that the strong economy and stable levels of unemployment made further rate cuts unnecessary in the view of the board. Inflation also remains somewhat elevated, a circumstance lower interest rates could aggravate."
"The decision comes as the central bank is embroiled in a controversy over its independence. The Trump administration is being sued for its dismissal of Federal Reserve governor Lisa Cook, a Biden appointee, after she was accused of committing mortgage fraud by the Federal Housing Finance Agency. (She denies the allegation.) Fed chair Jerome Powell is also being investigated by the Trump administration for alleged financial misconduct in the renovation of Federal Reserve buildings."
The Federal Reserve held the benchmark interest rate at 3.5-3.75 percent, citing a strong economy and stable unemployment that made further cuts unnecessary. Inflation remains somewhat elevated, and lower rates could worsen that condition. Two board members dissented and voted for a quarter-point cut, including appointee Stephen Miran and Christopher Waller, a potential Powell successor. The central bank faces a controversy over its independence, including a lawsuit over the dismissal of Governor Lisa Cook amid mortgage fraud accusations she denies, and an investigation of Chair Jerome Powell related to renovation expenditures.
Read at The American Conservative
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