Fed signals rate cut pause as central bank prepares for Trump showdown

The US central bank has signalled a pause in interest rates cuts demanded by the president as it grapples pressures from both elevated inflation and a weak jobs market. The Federal Reserve, which has a dual mandate to promote stable prices and maximum employment, guided that just one rate cut was currently likely in 2026 after it announced a third consecutive reduction in the cost of borrowing. Its key rate was trimmed to a near three-year low to around 3.6%, though there were three dissenting votes which a ...