Summary
- President Trump reportedly supported the Fed's decision to hold the interest rate, calling it the right decision.
- The change in stance from President Trump, who previously advocated for a rate cut, is drawing attention from investors.
- Concerns about inflation and the effects of tariffs were cited as the background for the rate hold.
President Donald Trump showed a somewhat cautious reaction regarding the timing of the Federal Reserve's (Fed) interest rate cut. Previously, President Trump had strongly pressured the Fed to lower the benchmark interest rate, but suddenly changed his stance on this day.
According to Bloomberg on the 2nd (local time), President Trump told reporters in Washington that "keeping the rate at this point was the right thing to do."
Last week, the Fed held its first regular Federal Open Market Committee (FOMC) meeting since the Trump administration took office. At that time, the Fed unanimously decided to hold the benchmark interest rate at 4.25~4.5%. The reason was the growing concerns about inflation and the possibility that President Trump's tariff effects could exacerbate this.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
