The US Federal Reserve has voted to keep interest rates the same, despite months of pressure from Donald Trump to lower borrowing costs.
The Fed said that rates will remain at a range between 4.25pc and 4.50pc, warning that uncertainty in the economy “remains elevated”.
Emphasising its remit commitment to maximum employment and inflation of 2pc, it said it “would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee’s goals.”
The central bank said it still anticipated cutting rates by half a percentage point this year, but suggested that cuts would come slower than previously expected in future years in a protracted fight to return inflation to the central bank’s 2pc target.
Meanwhile, it cut its expectations for US GDP growth this year from 1.7pc to 1.4pc, and from 1.8pc to 1.6pc in 2026, compared to its March projections.
