Federal Reserve holds interest rates as Trump piles on pressure

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Lauren Aratani in New YorkJanuary 28, 2026 at 08:09 PM

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The Federal Reserve decided to hold interest rates steady at its first meeting of the year, despite significant pressure from the Trump administration to lower them. The current interest rate range remains at 3.5% to 3.75%. This decision comes after three rate cuts in the fall. President Trump has repeatedly criticized Fed Chair Jerome Powell and called for lower rates to stimulate the economy, even launching personal attacks and a criminal investigation into Powell's handling of Fed building renovations. Powell has defended the Fed's independence and its data-driven approach to setting interest rates, stating the investigation is a "pretext" to influence monetary policy. The FOMC, comprised of 12 voting members, meets eight times annually to determine these rates.

Key Entities & Roles

Key Player Opposition Context

Congress 40% Justice Department 50% White House 60% United States ×270% FOMC ×375% Jerome Powell ×785% Federal Reserve ×990% Donald Trump ×790%

Keywords

interest rates 100% federal reserve 100% jerome powell 90% donald trump 90% fomc 80% rate cuts 70% criminal investigation 60% economic stability 60% central bank independence 50% economic agenda 40%