The Federal Reserve has signalled that it could hold rates steady at least through September as it defies Donald Trump’s repeated calls for the central bank to dramatically lower borrowing costs.
The central bank left borrowing costs unchanged at 4.25 per cent to 4.5 per cent after a meeting on Wednesday, despite an aggressive campaign by the US president to slash borrowing costs to 1 per cent and continuing uncertainty over the impact of his trade policy on the economy.
Fed governors Michelle Bowman and Christopher Waller dissented with the decision, saying the central bank should have cut rates by a quarter percentage point. It marked the first time since 1993 that two governors formally objected to a rate decision.
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