Interest rate cuts PAUSED for US economy as inflation 'remains elevated' in blow to Donald Trump

The US Federal Reserve has announced the country's base rate will remain at its current level in a blow to President Donald Trump's economic agenda amid his ongoing feud with the financial institution's chairman, Jerome Powell.

Interest rates have been hiked globally by central banks, including the Bank of England, in an effort to ease inflation; however, the cost of borrowing has begun to be come down over the past year.

After three consecutive cuts last year, the Federal Open Market Committee (FOMC) has set the US base rate to a range of 3.50 per cent to 3.75 per cent, and will remain at this level.

The Trump administration has singalled its desire to bring down interest rates in an effort to bolster the US economy, however experts have warned this could be inflationary.

In a ten-to-two vote, the FOMC's members voted to keep the base rate at its current range, noting that inflation in the US "remains elevated!.

Investors are preparing for President Trump's pick to be the next Fed chair, which is expected to be announced imminently.

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