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Washington: The US Federal Reserve left its key lending rate unchanged yesterday, resisting pressure from President Donald Trump to continue cuts in the first rate decision since his return to office.
Policymakers voted unanimously to keep the Fed's benchmark lending rate at between 4.25 percent and 4.50 percent, the Fed announced in a statement.
The unemployment rate has "stabilized at a low level in recent months, and labor market conditions remain solid," the Fed said, while noting inflation remained "somewhat elevated."
Most analysts agree the US economy is going fairly well, with robust growth, a largely healthy labor market, and relatively low inflation which nevertheless remains stuck above the Fed's long-term target of two percent.
The US central bank has a dual mandate from Congress to act independently tackle inflation and unemployment.
It does so primarily by raising or lowering its key short-term lending rate, which influences borrowing costs for consumers and businesses.
But the Fed's independence has not stopped Trump from weighing in on interest rates since his return to office on January 20.
"I'll demand that interest rates drop immediately," he said last week, later adding that he would "put in a strong statement" if the Fed did not take his views into account.
Analysts are divided about how many rate cuts they expect the Fed to make this year, pointing to uncertainty about the economic effects of President Trump's trade and immigration proposals.
Fed chair Jerome Powell will field questions from reporters at 2:30 pm (1930 GMT), with questions widely expected to focus on inflation, the labor market, and Trump's return.
