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| ▲ Fed Chairman Jerome Powell speaks at a news conference at the Federal Reserve Board Building in Washington on Dec. 10, 2025, in this photo released by Reuters. (Yonhap) |
FOMC-rate decision
U.S. Fed leaves key rate unchanged despite Trump pressure
By Song Sang-ho
WASHINGTON, Jan. 28 (Yonhap) -- The U.S. Federal Reserve kept its benchmark interest rate steady on Wednesday, defying President Donald Trump's continued pressure on the central bank to lower borrowing costs amid concerns over its independence.
During the two-day Federal Open Market Committee (FOMC) meeting, the Fed decided to leave the rate unchanged at the 3.5-3.75 percent range. Following three straight reductions since September, the pause has put the gap between the key rates of South Korea and the United States at up to 1.25 percentage points.
The rate decision came weeks after Fed Chair Jerome Powell revealed that he was the subject of a probe concerning his congressional testimony last year and the Fed's building renovation project, casting it as a consequence of the bank setting rates based on its assessment "rather than following the preferences of the president."
Trump is expected to announce his pick for a new Fed chair in the near future as Powell's term ends in May.
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