People and businesses in the US have faced policy changes in recent months. But one thing has been fixed: borrowing the cost fixed by the US Central Bank.

The Federal Reserve stuck with the strategy on Wednesday, which unchanged its major interest rate, even the officials’ expectations for the economy deteriorated.

The decision marked the fourth in a line without any action, making the bank’s impressive lending rate around 4.3%, where it stands since December.

Despite the forecast of policy makers, it came to expect slow growth, high unemployment and rapid inflation that they did a few months ago.

Typically, the fed reduces the cost of borrowing if it assumes that the economy is struggling and if prices start growing very quickly they raise them.

President Donald Trump has repeatedly asked Fed to cut interest rates, while further economic policy, carrying forward major changes, including increasing tariffs on goods around the world.

Fed officials, who are empowered to determine independent interest rates from the White House, stated that they are concerned that the one -time jump in prices may be converted into a more frequent problem due to those new levies.

Inflation, price speed increases, 2% of the fed remains above the target, coming at 2.4% in May.

Federal Reserve Chairman Jerome Powell said that the bank was hung for prices to grow more rapidly in the next months as the firms begins to pass their customers at the cost of import taxes.

“This process is very difficult to predict,” he said, given that it would depend on how big the tariffs are and their duration.

“This is why we think that the appropriate thing is where we are.”

He said that the bank could wait, given that the economy is overall “solid” and unemployment rate is 4.2%lower.

But the estimates issued by the Fed showed that the policy maker, on average, are expecting an increase of 1.4% this year, below 2.5% last year and 1.7% they were forecasting in March.

The forecasts call for inflation of approximately 3%, predicting 2.7%in March and an increase in unemployment rate up to 4.5%.

The approach to cut interest rate in 2025 did not change significantly, most members are still expecting to fall below 4% by the end of the year.

But estimates estimate a slightly higher rates than the forecast in 2026 and 2027.

In a comment on Wednesday before the Fed’s decision, Trump repeated his criticism of Powell, “stupid” and “too late”, while speculating about the end of his term.

European Central Bank has cut interest rates eight times since last June. Bank of England cut the cost of lending last month, but expected to keep the rates stable this week.

But Isaac Stell, Investment Manager of Wealth Club, said that Trump “spoke himself in a bond”, because the Fed is committed to his waiting and viewing approach.

He said, “The central bankers envy the jealousy of their freedom, which means that they can simply sit on the fence until there is really a compelling reason,” he said.

Fed interest rate decisions determine what it charges for banks for short -term loans.

In turn, that rate has a significant impact on the cost of borrowing in the economy, informing what to charge homes and businesses for regular bank mortgage and other types of loans.

At 4.3%, the fed benchmark interest rate remains clearly higher than between 2008 and 2022, when the bank began to increase rates in response to rising prices.

But this is about one percent of the lower point where it stood last year.