Economic Affairs Editor
Economic analyst Noura Al -Faihani stressed that “the decision of the American federal reserve stabilizes the interest rate in its last meeting, strengthened the confidence of the global financial markets, stressing its independence from political pressures, despite the repeated demands of former President Donald Trump to reduce rates urgently to support economic activity and reduce the burdens of government debt.”
“Federal President Jerome Powell stressed during his press conference that monetary policy decisions are based on economic data and future expectations away from any political considerations, noting that inflation is still above the target level of 2%, while the American economy continues to achieve good growth rates in the gross domestic product.”
“Powell pointed out that the new tariffs and the escalating commercial policies contributed to increasing pressure on prices, which prompted the federal to wait and install interest to avoid any exacerbation of inflation in the current stage.”
She stated that “Trump’s recent visit to the Federal headquarters in Washington came days before the meeting and shed light on the costs of the institution’s administrative renewal project, as part of a clear attempt to exercise more pressure on the central bank to change its position. However, the federal maintained its neutrality and independence, rejecting any political interference in the course of its decisions and monetary policy.”
She explained that “the meeting witnessed the first internal division in the open market committee in more than three decades, as two conservatives voted in favor of reducing interest a quarter of a point, in an indication of the variation of opinions on the optimal time to reduce prices.”
She concluded that “the independence of central banks, led by the American Federal Reserve, remains a basic pillar of the stability of global financial markets, and that the federal position has strengthened investor confidence in its commitment to a balanced monetary policy far from political pressures.”
