The US Federal Reserve held its benchmark interest rate steady for the fifth consecutive time on Wednesday, despite President Donald Trump's repeated calls for the central bank to lower the rate.
The Fed announced its decision to keep the rate at the 4.25-4.50 percent range after the two-day Federal Open Market Committee meeting where two members of its Board of Governors voted against the decision, preferring to lower the rate by a quarter percentage point -- the first dissent by two governors since 1993.
The bank has left borrowing costs unchanged since January, following a quarter percentage point reduction in December. This week's pause puts the gap between the key rates of South Korea and the United States at 2 percentage points.
Fed Chair Jerome Powell cast the current monetary policy as "modestly restrictive," while acknowledging that there were two dissenters during this week's rate-setting meeting.
"The majority of the committee was of the view that inflation is a bit above target, (and that) maximum employment is at target ... that calls for modestly restrictive -- in my way of thinking, modestly restrictive stance of policy for now," Powell told a press conference.
He declined to give a forecast about whether the central bank will cut the rate at the September FOMC meeting.
"We have made no decisions about September. We don't do that in advance," he said.
"We will be taking that information into consideration and all the other information we get as we make our decision at the September meeting," he added, referring to the planned release of employment and inflation data before the September FOMC gathering.
Last month, the Fed continued to project two rate cuts this year. Before the end of this year, the FOMC plans to hold meetings in September, October and December.
Trump has been continuously pressuring the Fed and Powell to cut the rate, making the case that his tariff policy will not drive up prices.
"'Too Late' MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!," Trump wrote on Truth Social ahead of the Fed's rate decision. (Yonhap)
