Federal Reserve keeps interest rates unchanged despite Trump pressure

Core Viewpoint - The Federal Reserve has decided to maintain interest rates between 3.5% to 3.75%, despite external pressure for a cut, citing solid economic expansion [1] Group 1: Federal Reserve's Decision - The Fed's decision to keep interest rates unchanged follows three rate cuts last year amid pressure from the White House [1] - The Fed noted that job gains have remained low and the unemployment rate shows signs of stabilization, while inflation is still somewhat elevated [2] Group 2: Political Context - President Trump is expected to announce a replacement for Fed chair Jerome Powell, who has faced criticism for not cutting rates quickly enough [3] - Christopher Waller, a Fed official who voted for a rate cut, is considered a potential replacement for Powell [4] Group 3: Legal and Investigative Issues - Powell has received subpoenas from the Justice Department related to a criminal investigation concerning his congressional testimony about a $2.5 billion building renovation [5] - The White House previously attempted to remove Fed board member Lisa Cook, alleging mortgage fraud, which she has denied [6] Group 4: Market Reactions and Economic Independence - Economists suggest that Trump's pressure on the Fed may have backfired, as Senate Republicans have shown support for Powell and threatened to block any replacement [7] - Recent weeks have been viewed positively for Fed independence, according to Patricia Zobel from Guggenheim Investments [7]