The US Federal Reserve has kept its benchmark interest rate unchanged at 4.25% to 4.5%, resisting mounting pressure from former President Donald Trump to lower borrowing costs amid mixed economic signals.

In a statement released Wednesday, the Federal Open Market Committee (FOMC) noted that while net exports have shown volatility, overall economic activity moderated in the first half of the year. The labor market remains strong, and unemployment is low, but inflation remains slightly above target.

“The committee is strongly committed to supporting maximum employment and returning inflation to its 2% objective,” the statement read, adding that uncertainty around the economic outlook remains elevated.

Recent data from the US Commerce Department showed that GDP expanded by 3% in Q2, rebounding from a 0.5% contraction in Q1. Meanwhile, consumer prices rose 2.7% in June year-over-year — the highest increase since February — signaling ongoing concerns about tariff-driven inflation.

Two of the twelve FOMC voting members supported a 25 basis point rate cut, while one member abstained. However, Fed Chair Jerome Powell said the committee had not yet decided whether to cut rates in the upcoming September meeting.

“It seems to me, and to almost the whole committee, that modestly restrictive policy is still appropriate,” Powell said. He acknowledged the effect of tariffs on certain goods but said broader inflation and economic impacts remain unclear.

Responding to the Fed’s stance, Trump took to social media, calling for a rate cut and citing strong GDP numbers. “No Inflation! Let people buy and refinance their homes!” he urged.

Powell emphasized that the Fed remains independent and does not consider fiscal policy needs when setting rates, underscoring the importance of central bank credibility.