Economics

Jerome Powell resists Trump pressure as policymakers weigh energy shock against a weakening US jobs market

The US Federal Reserve held interest rates steady for the second time this year, a widely expected move amid turmoil in the Middle East and rising energy prices.

Fed officials faced a confluence of issues to consider in their meeting this week: soaring oil and gas prices, fluctuating inflation that still remains above the Fed’s target of 2%, and a weakened job market that unexpectedly saw 92,000 losses last month.

All but one of the 12 voting members of the committee voted to keep rates at a range of 3.5% to 3.75%, resisting enormous pressure from Donald Trump to lower borrowing costs at the risk of driving up prices in the long term. Fed governor Stephen Miran, who was appointed by Donald Trump last fall, was the sole dissenter.