The U.S. Federal Reserve kept its key interest rate steady at the current 3.50~3.75% at its first monetary policy meeting of the new year.
After three consecutive rate cuts since last July, the Fed is pausing after six months.
The Federal Open Market Committee assessed that U.S. economic growth has risen to a solid level.
[Jerome Powell/Chair of the Federal Reserve of the United States: The U.S. economy showed solid growth last year and stands on a strong foundation this year as well. The employment growth rate remains at a low level, but the unemployment rate is showing signs of stabilization, and inflation is maintaining a somewhat elevated level.]
The Fed reconfirmed its cautious stance on further rate cuts, as the inflation rate still exceeds the target.
However, it is reported that there was pressure within the Fed for rate cuts.
Steve Myren, a governor appointed by President Trump, and Christopher Waller, a governor who has been mentioned as a candidate for the next chairman, called for a 0.25 percentage point rate cut, as Trump desired.
The media's attention on this day was focused on Chairman Powell's statement.
This is because he recently received a grand jury subpoena from the Department of Justice related to the renovation costs of the Federal Reserve building, and is facing public pressure from President Trump to resign.
[Donald Trump/President of the United States (Local time, 13th): We have a really bad Federal Reserve chairman. He's inadequate in many ways, but the biggest problem is that he has set interest rates too high.]
However, on this day, Powell remained silent on questions related to the investigation while offering pointed advice to the next Federal Reserve chairman.
[Jerome Powell/Chair of the Federal Reserve of the United States: First, you must distance yourself from election politics. It means not getting caught up in politics influenced by elections.]
