US President Donald Trump criticized the central bank’s decision not to change federal funds between 4.25% and 4.50%, and reiterated his appeal to the Fed to lower interest rates.
The Fed’s two-day monetary policy meeting ended without adjusting interest rates, and Trump urged him to express his dissatisfaction, arguing that interest rate cuts were needed as the economic impact of US tariffs became increasingly apparent.
Meanwhile, Fed officials, including Atlanta Federal President Rafael Bostic, have shown a more cautious approach, noting that uncertainty about the direction of the economy remains, even as concerns rise among households and businesses.
Bostic said the Fed’s inflation forecasts have changed little this year, and inflation was not expected to return to its 2% target until 2027. Bostic warned that roads that lower inflation will fluctuate and describe it as “a very bumpy vehicle.”
Bostic has repeatedly said that the Fed is currently only looking at one rate cut this year despite speculations of multiple interest rate cuts in 2025. Bostic also addressed tariff concerns, noting that historically these tariffs have led to one spike in prices, but this time the situation could be different.
The Fed is cautious about making sudden policy changes, but Bostic said it is important for the central bank to avoid scenarios where fees are lowered earlier but reversed courses later. Bostic also said the Fed will respond appropriately if the economic situation becomes significantly weaker.
*This is not investment advice.
