Joost van Leenders, an investment strategist at Van Lanschot Kempen, said that the Fed's decision to keep policy interest rates unchanged on Wednesday was not surprising. This move shows that the central bank needs to prove its independence in the face of political challenges. The Federal Reserve mentioned the uncertainty surrounding tariffs, which could drive up inflation and unemployment. Van Leenders said that decision makers were also resisting political pressure at the time. US President Trump recently attacked the Federal Reserve and its Chairman Powell again, accusing the latter of being too hesitant in reducing borrowing costs. Van Leenders said that this makes it less likely that the Fed will cut interest rates. “After all, its policy independence is at risk,” he said.

Joost van Leenders, an investment strategist at Van Lanschot Kempen, said that the Fed's decision to keep policy interest rates unchanged on Wednesday was not surprising. This move shows that the central bank needs to prove its independence in the face of political challenges. The Federal Reserve mentioned the uncertainty surrounding tariffs, which could drive up inflation and unemployment. Van Leenders said that decision makers were also resisting political pressure at the time. US President Trump recently attacked the Federal Reserve and its Chairman Powell again, accusing the latter of being too hesitant in reducing borrowing costs. Van Leenders said that this makes it less likely that the Fed will cut interest rates. “After all, its policy independence is at risk,” he said.