The Federal Reserve on Wednesday kept interest rates unchanged and provided scant insight into when further cuts may take place – sparking a quick rebuke from President Donald Trump.

Emerging from their first policy meeting during Trump’s second term in the White House, Fed Chair Jerome Powell said central bank officials are “waiting to see what policies are enacted” before judging their effects on inflation, employment and overall economic activity, and they are in no hurry to adjust rates further.

Trump didn’t wait long to bash the man he appointed to lead the Fed during his first term.

He accused the central bankers and Powell of allowing inflation to skyrocket to a four-decade high in the aftermath of the COVID-19 pandemic.

“Because Jay Powell and the Fed failed to stop the problem they created with Inflation, I will do it by unleashing American Energy production, slashing Regulation, rebalancing International Trade, and reigniting American Manufacturing, but I will do much more than stopping Inflation, I will make our Country financially, and otherwise, powerful again!” Trump wrote on Truth Social two hours after the Fed’s decision.

“If the Fed had spent less time on DEI, gender ideology, ‘green’ energy, and fake climate change, Inflation would never have been a problem. Instead, we suffered from the worst Inflation in the History of our Country!”

Powell — speaking at a press conference following the unanimous decision to keep the overnight interest rate in the current 4.25%-4.50% range — said, “we do not need to be in a hurry to adjust our policy stance” and monetary policy is “well positioned” for the challenges at hand.

When asked whether the president told Powell his demand directly, he replied: “I’ve had no contact.”

He also declined to comment on Trump’s demand for an immediate cut, saying the Fed will be “really keeping our heads down and doing our work and that’s how we best serve the public.”

Powell noted there are risks to cutting rates too aggressively, saying “we know that reducing policy restraint too fast or too much could hinder progress on inflation.”

After several months in which inflation data have largely moved sideways, the central bank dropped from its latest policy statement language saying that inflation “has made progress” towards the Fed’s 2% inflation goal, noting only that the pace of price increases “remains elevated.”

Recent key inflation readings remain about half a percentage point or more above the Fed’s target.
Fed officials say they largely believe the progress in lowering inflation will resume this year, but have now put rates on hold as they await data to confirm it.

“Economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the central bank’s policy-setting Federal Open Market Committee said in a statement.

“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” it said.

Investors had largely expected the Fed to press pause on its easing campaign after slashing interest rates by a full percentage point last year, starting with an outsize half-point cut in September, which was the first cut in four years.

The Dow initially plunged more than 200 points after the Fed decision, but pared some of the losses, closing 136 points in the red.

The Federal Open Market Committee’s meeting was the first of the year and the first under the Trump administration, and all eyes are on Powell as he faces pressure from the president, who last week claimed to know “interest rates much better than they do.”

“I think I know it [interest rates] certainly much better than the one who’s primarily in charge of making that decision,” Trump said last week in an apparent dig at Powell. “If I disagree, I will let it be known.”

When asked if he thought Fed officials would listen to him, Trump replied: “Yeah.”

Trump appointed Powell as chairman during his first presidential term in 2017 – but repeatedly criticized him and the central bank for not easing monetary policy quickly enough.

During his first term, Trump called Powell and his Fed colleagues “boneheads” for not lowering interest rates.

“President Trump has already been very vocal about his desire for rates to come down, and we expect Jerome Powell to tread carefully about political pressure and rates,” David Laut, chief investment officer at Abound Financial, said in a note before the meeting.

Powell refused to comment directly on the president’s plans, including his recent vow to reduce gas and energy costs in order to bring down inflation.

Economists have expressed concern that harsh tariffs could reheat inflation, making it more difficult for the Fed to justify further rate cuts.

“President Trump is working fast to implement many of his desired policies and campaign promises. So far, there has been little, if any, impact,” Melissa Cohn, regional vice president at William Raveis Mortgage, said in a note.

“It will take time to see how everything plays out in Washington and how the new policies impact inflation and the economy,” she added.