I am sure this is in defiance of Trump's threat to Jerome Powell. But to be honest, the rate should have been cut, judging by the trend of the US inflation rate.
Although Jerome Powell is the Fed chairman but he does not have sole authority to make decisions on interest rates. Like any agency in the US, lowering or raising interest rates requires a vote and according to the announcement, there were 9 votes in favor of maintaining interest rates and only 2 votes in favor of lowering interest rates.
Contrary to you, I think it is reasonable to maintain interest rates because the risk of a tariff war is still very unpredictable, it can become serious and destabilize the economy at any time. Lowering interest rates now would be useless if trade deals break down and cause global inflation.
Trump needs to end the tariff war before he wants to lower interest rates.
U.S PCE PRICE INDEX 0.3% M/M, EXP. 0.3%
U.S. CORE PCE PRICE INDEX 0.3% M/M, EXP. 0.3%
U.S. PCE PRICE INDEX 2.6% Y/Y, EXP. 2.5%
U.S. CORE PCE PRICE INDEX 2.8% Y/Y, EXP. 2.7%
https://x.com/Investingcom/status/1950899704746705033