Trump urges Fed to lower rates, adopt quantitative easing

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US employers added almost 200,000 jobs in March, evidence of continued strength in the labor market and a sign as well that the Fed's four rate hikes in 2018 had not constrained the economy.

The U.S. central bank is keeping a key interest rate steady, despite urges from President Donald Trump to lower it in order to boost the economy.

After keeping its benchmark interest rate at zero for the better part of a decade in order to stimulate the economy, the US central bank has raised the rate eight times since Trump became President to keep inflation under control as the economy has improved.

"The [Fed] will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes", the Fed wrote in a statement released at the conclusion of their two-day policy meeting.

The political pressure complicates the job of Fed Chair Jerome Powell - whom Trump appointed - because even if he is inclined to roll back some of the rate increases, doing so could undermine the central bank's credibility.

Federal Reserve Chairman Jerome Powell said US inflation is possibly being dragged down by "transitory" forces and there is no bias to either tighten or ease monetary policy.

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"We have the potential to go up like a rocket if we did some lowering of rates, like one point ... with our wonderfully low inflation, we could be setting major records, and, at the same time, make our National Debt start to look small!".

PwC Partner Mitch Roschelle on USA economic outlook's potential impact on Federal Reserve policy.

The Fed's main concern at the moment is that inflation, a measure of how much the cost of living is rising, might be too low.

The chief concern flagged in the policy statement was the now "muted" level of inflation, which continues to fall short of the Fed's 2 percent target.

But he said: "We did see inflation running persistently below, then that's something the committee would be concerned about".

The Fed raised rates four times a year ago, lifting its policy rate to a range of 2.25 percent to 2.50 percent. This is a technical change meant to bring the overnight inter-bank lending rates down to the middle of the Fed's rate target range following several weeks of slightly elevated rates nearer to the top of range.

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