Federal Reserve Holds Interest Rates Steady Amid Economic Strength and Scrutiny of Chair Powell

Washington D.C. The US central bank, the Federal Reserve (Fed), has decided to keep interest rates unchanged. Following the policy meeting held on Wednesday, the Fed decided to maintain the key lending rate in the range of 3.5 percent to 3.75 percent. According to the Fed, there is no immediate need to change the rate as the US economy is expanding at a solid pace.

The Fed kept the interest rates unchanged this time even as US President Donald Trump has repeatedly criticized Powell for not cutting interest rates quickly enough. Meanwhile, federal prosecutors have initiated a criminal investigation into Powell over his testimony to the Senate regarding the renovation of the Fed's building.

Although Powell refused to comment on the investigation during Wednesday's press conference, he warned that if the independence of the central bank is weakened, it will be difficult to restore the institution's credibility. "The arrangement where monetary policy is not under the control of directly elected leaders is in the public interest," he said. He stated that if the Fed loses its independence, trust in the Fed will be seriously damaged.

Powell had previously stated that the investigation against him was due to President Trump's dissatisfaction with interest rate cuts. He is set to step down as Fed Chair in May, and Trump is expected to announce a new Chair soon. Powell also stated that the Fed is continuously evaluating the impact of the three interest rate cuts made last year. "The economy has once again shown its strength," he concluded. Conclusion