Fed leaves interest unchanged, despite increasing pressure from Trump

This article was last updated on July 31, 2025

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Fed leaves interest unchanged, despite increasing pressure from Trump

Despite the ever -growing pressure, the American dome of central banks holds back straight against President Donald Trump. The Federal Reserve, in short Fed, leaves interest in the United States for the fifth time in a row. It remains unchanged at a relatively high percentage between 4.25 and 4.5 percent.

Due to the high interest rate, borrowing money for American consumers and companies is relatively expensive. The Fed fears that lower interest rates will further raise high inflation in the United States. The dollar is also weak due to the global trade war who unleashed US President Trump in April. In addition, the FED first wants to await the economic consequences. Trump requires that the FED reduces interest rates, so that borrowing money becomes cheaper.

‘Huge Loser’

To put pressure on the Fed, Trump has been taking chairman Jerome Powell for months publicly under fire. On his social media platform Truth Social, he called Powell a “stupid head”, “fool”, “huge loser” and a “Trump-hater”. Trump also alluded several times on the resignation of Powell, who was called to the congress to provide text and explanation about the interest policy.

Trump cannot just fire Powell, who does not want to know of any neighborhoods. That is why the president has been throwing it over a different approach for a few weeks. He accuses Powell of having the costs of the renovation of the head office and to have another Fed building in Washington got out of hand.

On Friday, Trump even visited the construction site, where he tried to take the size of Powell again in front of the cameras. The FED director, however, again did not shrink and served the president of reply.