In a surprising turnaround, President Donald Trump praised the Federal Reserve's decision to hold off on further rate cuts, despite demanding rate cuts in the past year. The decision came as concerns over inflation spike due to Trump's economic policies, including tariffs and immigration crackdowns. However, Trump continues to push for lower interest rates for the US economy to remain competitive. Investors are concerned about inflation blocking further growth, as the key inflation measure, the PCE price index, increased to 2.6% in December. Fed Chair Jerome Powell made it clear that the central bank would not base its decisions on political interference. Trump, however, believes he knows interest rates better than the Fed. While their approaches differ, both Powell and Trump agree on the importance of a stable US economy. The pause in rate cuts could be temporary, with the possibility of more rate cuts later in the year if inflation cools.



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