• The Federal Reserve has decided to keep interest rates steady at 4.25% to 4.50%.
• President Trump criticized Fed Chair Jerome Powell, calling him a "fool" and accusing him of acting too late.
• Economists warn that Trump's tariffs may lead to inflation and rising unemployment.
• Powell emphasizes the need for patience to assess the impact of tariffs on the economy.

The Federal Reserve maintained its benchmark interest rate at a range of 4.25% to 4.50%, resisting calls from President Trump for a decrease. The decision, announced on May 7, comes amid uncertainties related to Trump's tariffs, which have prompted concerns about rising inflation and unemployment, according to ABC News and Business Insider.

Trump expressed his displeasure via social media, branding Powell a "fool" for not cutting rates sooner, claiming that lower rates would act like "jet fuel" for the economy. He stated, “Other than that, I like him very much!” contradicting his critical tone towards Powell's rate decisions, according to The Hill and India Times.

Despite Trump’s requests for immediate rate cuts, Fed Chair Powell stated that the central bank is closely monitoring the situation, waiting to assess the enduring effects of trade policies on the economy. Recent inflation data showed a cooling trend, with some economists predicting potential increases in inflation later this year due to tariffs, according to CBS News and Newsweek.

The Fed's decision to hold steady reflects a cautious approach amidst pressures from both the White House and economic data. Powell noted that “uncertainty about the economic outlook has increased,” indicating a complex landscape where inflation and unemployment trends may interplay as tariffs evolve, according to AA and CBS News.

Trump's continued attempts to influence rate policies underscore the friction between the White House and the Federal Reserve's independent functioning. Powell maintains that decisions will be based on data and the economic outlook rather than presidential pressure, referencing his commitment to the Fed's dual mandate to stabilize prices and support full employment, according to Newsweek and CBS News.