Why the US central bank chose to keep interest rates steady

Days before the US midterm elections 2026, the Federal Reserve holds interest rates steady. Why has the Fed resisted Donald Trump’s calls for cuts, and what does it mean for inflation, borrowing costs and the election?

PoliticsUnited States of America

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PoliticsUnited States of Americahttps://p.dw.com/p/5Oo0q

Ahead of the midterm elections, the US Federal Reserve decided to keep interest rates unchanged, defying public calls from President Donald Trump to slash borrowing costs. Fed Chair Kevin Warsh insisted the move was strictly economic, noting inflation remains stubbornly high. Speaking to DW News, economist Gerald Cohen warned that lowering rates could overheat an already strained economy, adding that persistent inflation continues to erode American purchasing power.

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