The Federal Reserve opted to keep interest rates unchanged on Wednesday, resisting mounting pressure from President Donald Trump for a rate cut. The central bank’s Federal Open Market Committee (FOMC) maintained its benchmark interest rate in the range of 4.25% to 4.5%, where it has remained since December 2024.

The decision comes amid growing internal division. For the first time in three decades, more than one Fed governor dissented from the majority view, signaling tension within the central bank as it navigates competing concerns over inflation, growth, and political influence.

President Trump has repeatedly urged the Fed to lower rates to support economic expansion and domestic manufacturing, especially as his administration doubles down on aggressive trade policies and tariffs.

Fed Chair Jerome Powell, however, defended the pause, emphasizing a “wait and see” approach to monitor inflation trends and broader economic indicators before making any moves.