US Federal Reserve holds interest rates steady, defying Trump pressure

The US Federal Reserve held interest rates steady on Wednesday at its first policy gathering this year, citing robust economic growth, as the central bank resists President US Donald Trump’s mounting pressure for cuts.The Fed’s 10-2 vote maintains rates at a range between 3.50 per cent and 3.75 per cent, an outcome that was widely expected as officials await more data on the world’s biggest economy.In a statement on its decision, policymakers flagged that economic activity has been “expanding at a solid pace”, while the unemployment rate showed some “signs of stabilisation”.But the Federal Open Market Committee saw two dissents.Fed Governor Stephen Miran, alongside Christopher Waller – who is seen as a potential candidate to succeed chairman Jerome Powell – both backed a quarter-percentage-point rate cut instead.Fed Governor Stephen Miran gives a lecture at the National Gallery in Athens on January 14. Photo: AFPThe Fed has made quarter-point cuts at its last three policy meetings, as officials worried about the cooling jobs market. Miran, who was recently appointed by Trump, pushed for larger reductions each time.