Fed leaves rates on hold as political pressure ramps up

The Federal Reserve left interest rates unchanged on Wednesday as expected and indicated no change to its "patience" stance on monetary policy, as the Trump administration continues to call on the Fed to cut interest rates.

Between the lines: In a change to its policy statement, the Fed acknowledged inflation was "running below" its 2% target. However, speaking to reporters on Wednesday, Fed chair Jerome Powell said "transitory" factors were to blame for muted inflation — disappointing investors who were betting low inflation would push the Fed to cut rates this year.