Editorial

15:22 JST, August 1, 2025

U.S. President Donald Trump’s repeated demands for interest rate cuts will only cause confusion. It is important for the U.S. Federal Reserve Board to continue to implement its policies without being swayed by pressure.

The Fed has decided to keep its policy interest rate unchanged at 4.25%-4.50% per year. This is the fifth consecutive meeting this year where the rate has been left unchanged.

Trump continues to put pressure on the Fed to cut interest rates with the aim of boosting the economy, and last week he visited the Fed headquarters. The Fed’s decision was apparently an indication of Fed Chair Jerome Powell’s intention not to bow to such demands.

The Trump administration imposed “reciprocal” tariffs and other measures in April. The U.S. consumer........

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