Federal Reserve keeps interest rates unchanged — despite Trump pressure

New York Post - May 7th, 2025

The Federal Reserve has decided to keep the interest rates unchanged, resisting President Trump's demands for immediate rate cuts. The decision, leaving the Fed funds rate between 4.25% and 4.5%, comes amid rising economic uncertainty fueled by Trump's ongoing trade war. The Fed's policy note highlighted heightened risks of inflation and unemployment, as well as disruptions from swings in net exports. This choice, while expected, led to a brief dip in the stock market as the Dow lost its earlier gains following the announcement.

The Fed's stance reflects concerns over mixed economic indicators, including a recent GDP contraction attributed to a surge in imports ahead of new tariffs. Meanwhile, job growth exceeded expectations with 177,000 new jobs added, yet consumer sentiment has declined sharply. Treasury Secretary Scott Bessent offered some optimism regarding trade deals, but President Trump's comments during a meeting with Canadian Prime Minister Mark Carney reiterated a hardline stance, contributing to market volatility. The ongoing trade negotiations and economic policy decisions remain crucial as the year progresses.

Donald Trump Federal Reserve Jerome Powell Scott Bessent Stock Market Interest Rates Trade War Trade Negotiations Economic Uncertainty Gdp

Story submitted by Fairstory

RATING

7.0

Fair Story

Consider it well-founded

The article effectively covers the Federal Reserve's decision to maintain interest rates, providing a timely and relevant analysis of its implications. It accurately reports key facts and presents a balanced view of the economic and political context. However, the story could improve by incorporating more direct source citations and a wider range of perspectives to enhance credibility and depth. The clear and accessible language makes it suitable for a general audience, though further simplification of complex economic concepts could aid comprehension. Overall, the article is informative and engaging, addressing issues of significant public interest and potential impact on economic policy discussions.

Accuracy

The story accurately reports the Federal Reserve's decision to maintain interest rates, aligning with official statements and economic data. It correctly attributes the decision to economic uncertainties related to trade policies and provides precise figures for the interest rate range (4.25% to 4.5%). The story also accurately depicts President Trump's public criticisms of Fed Chair Jerome Powell and the market's reaction to the Fed's announcement. However, the report could benefit from more direct citations of the Fed's policy note or economic data sources to bolster verifiability.

Balance

The article presents a balanced view of the Federal Reserve's decision by including perspectives from both the Fed and President Trump. It acknowledges the economic uncertainties and mixed data influencing the Fed's decision while also highlighting Trump's contrasting opinion on interest rate cuts. However, the piece could improve balance by including more voices, such as economists or market analysts, to provide a broader range of perspectives on the implications of the Fed's decision.

Clarity

The article is well-structured and uses clear language, making it accessible to a general audience. The logical flow from the Fed's decision to the market reaction and economic indicators is easy to follow. However, some sections could benefit from more detailed explanations, such as the specific impacts of trade policies on economic data, to enhance reader comprehension.

Source quality

The article relies on credible sources, such as the Federal Reserve and the Bureau of Labor Statistics, for economic data and policy decisions. However, it lacks direct attribution to specific reports or statements from these entities, which would enhance the credibility of the information presented. Including quotes from economists or financial analysts could also improve the depth and authority of the reporting.

Transparency

The article provides a general context for the Fed's decision, mentioning economic uncertainty and trade policies. However, it could improve transparency by explicitly stating the sources of economic data and the Fed's policy note. Additionally, clarifying any potential biases or conflicts of interest in the reporting would enhance transparency.