Washington: The U.S. Federal Reserve announced Wednesday that it has decided to keep its benchmark interest rate unchanged, following a two-day meeting of the Federal Open Market Committee (FOMC). This decision comes less than a week after President Donald Trump publicly stated his intention to demand rate reductions from the central bank.

According to Yonhap News Agency, the Federal Reserve has held the rate steady at the 4.25 to 4.50 percent range. This decision follows a series of rate adjustments over the past few months, including a quarter-percentage-point cut last month, a 25 basis-point cut in November, and a 50-basis-point reduction in September.

Last month, the FOMC released new median economic projections, indicating that the federal funds rate could be reduced to 3.9 percent by the end of the year. This projection suggests the potential for two rate reductions within the year.

The Federal Reserve stated in a press release that recent indicators point to ongoing expansion in economic activity. It noted that the unemployment rate has stabilized at a low level, and labor market conditions remain strong. Additionally, the statement highlighted that inflation continues to be somewhat elevated.

President Trump, during a video call at the World Economic Forum in Switzerland last week, expressed his demand for an immediate drop in interest rates. He asserted his familiarity with interest rates, implying that they should be lowered more swiftly.

The Fed's decision this week has resulted in a rate gap of up to 1.5 percentage points between the key rates of South Korea and the United States.