Federal Reserve Holds Interest Rates Steady

In a move that has left many Americans frustrated and confused, the Federal Reserve has once again refused to cut interest rates, keeping the benchmark range locked between 4.25% and 4.5%. This comes despite the central bank’s own admission that the economy remains in a “solid position.”

Federal Reserve Chair Jerome Powell insisted, “We are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments.” Translation? More dithering while inflation eats away at the average American’s paycheck.

Let’s break this down:

• The Consumer Price Index (CPI) rose to 2.4% in May, a slight uptick from April, but still far from the disastrous highs under Biden’s economic mismanagement.

• Energy and gas prices actually dropped with gas falling by 2.6% yet Powell continues to obsess over hypothetical inflationary ghosts instead of responding to hard data.

• Despite holding rates, Powell admitted that tariffs primarily Trump-era protections may raise prices temporarily. But as usual, the long-term benefits of reshoring jobs and strengthening national supply chains are conveniently ignored.

President Donald Trump didn’t hold back in his assessment: “We have a stupid person, frankly, at the Fed... He’s a political guy who’s not a smart person.” And he’s right. Under Powell’s leadership reappointed by Biden, no less the Fed has prioritized political narratives over sound economic action. Americans are still struggling with housing costs, rising credit card interest, and inflated grocery bills, all while the Fed refuses to act.

Here’s the reality they won’t tell you:

• Mortgage rates are hovering near 7%, locking out first-time homebuyers and putting the American dream further out of reach.

• Household debt hit a record $17.7 trillion this year, with credit card delinquencies on the rise, yet the Fed continues to stand still.

• Job creation is largely in low-wage, part-time positions, not the kind of robust economic growth Americans were used to under Trump’s first term.

Powell’s excuse? That the U.S. economy has “defied forecasts” and shows “no sign of weakening.” That’s a convenient narrative from an out-of-touch bureaucrat who doesn’t live paycheck to paycheck.

Even the Federal Reserve’s own statement admits “inflation remains somewhat elevated,” and that “uncertainty about the economic outlook has diminished but remains elevated.” In other words, they’re not sure what’s going on but they’ll still pretend everything is under control.

Trump’s message was clear: when he returns to the White House, Powell won’t be. “He’s done a very poor job,” Trump said. “So we have no inflation, we have only success, and I’d like to see interest rates get down.”

For working families, small businesses, and retirees, the refusal to cut rates means continued pain. The longer the Fed delays, the more Americans suffer under Bidenomics and a Federal Reserve that’s become more about political optics than economic stewardship.

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