Washington: The U.S. Federal Reserve announced Wednesday that it has decided to keep its benchmark interest rate unchanged, following a two-day Federal Open Market Committee (FOMC) meeting. This decision comes shortly after President Donald Trump expressed his desire for rate cuts.

According to Yonhap News Agency, the central bank's decision leaves the rate steady at the 4.25 to 4.50 percent range. This follows a series of rate cuts last year, including a quarter-percentage-point reduction last month, a 25 basis-point cut in November, and a 50-basis-point cut in September. The FOMC's latest economic projections indicated a potential reduction of the federal funds rate to 3.9 percent by the end of the year, suggesting the possibility of two more rate cuts in the coming months.

This decision maintains a gap of up to 1.5 percentage points between the key rates of South Korea and the United States. During a press conference, Fed Chair Jerome Powell highlighted the committee's consensus that there is no urgency to alter the monetary policy. He stated, "We see things as in a really good place for policy and for the economy, and so we feel like we don't need to be in a hurry to make any adjustments."

The Federal Reserve's assessment of the current economic situation was optimistic, noting continued expansion of economic activity, stable unemployment rates, and solid labor market conditions. However, inflation remains somewhat elevated.

The Fed's decision comes in the wake of President Trump's remarks at the World Economic Forum, where he demanded immediate interest rate reductions, claiming superior knowledge of interest rates compared to the central bank. Powell refrained from commenting on Trump's statements, emphasizing the Fed's independent focus on achieving its goals and serving the public interest without political interference.

Regarding policy measures related to tariffs, immigration, and other areas, Powell indicated that the central bank is in a "wait and see" mode. He stressed the importance of assessing the implications of these policies once they are clearly articulated.