Fed's Hold on Rates Amid Trump's Economic Uncertainty

The Federal Reserve is likely to maintain interest rates, awaiting more data on inflation and jobs in light of economic disruptions from President Trump's policies. The Fed is cautious due to potential trade and immigration policy changes, amid pressures for lower rates from Trump.

The Federal Reserve is expected to maintain its interest rates as it awaits further data on inflation and employment in the wake of President Donald Trump's policy shifts. The decision comes amid Trump's push for lower rates, asserting he understands the issue better than the Fed's policymakers.

Since taking office last week for a second term, Trump has introduced a raft of executive orders, including a temporary halt on federal spending, which was stalled by a federal judge. His proposed tariffs on imports have prompted fears of exacerbated inflation, contrary to cooling it.

The impending two-day Fed meeting marks a test in the tumultuous relationship between Trump and Fed Chair Jerome Powell. While the Fed's latest projections don't indicate further rate cuts, the economic landscape may shift with pending federal economic plans and Trump's aggressive policy agenda.

(With inputs from agencies.)