The US central bank has left interest rates unchanged again, despite pressure from President Donald Trump to lower borrowing costs.

The decision keeps the Federal Reserve’s influential lending rate hovering around 4.3%, marking the third announcement in a row without action.

A cut could boost the economy after Trump’s barrage of tariffs, which the Fed says raise risks for both growth and price stability.

But the bank – which is set up to make policy independent of the White House – has said it will be patient on how fast it lowers rates.

The decision is the first since Trump’s tariff announcements last month raised import taxes on goods from countries around the world, with imports from China facing duties of at least 145%.

Logistics firms and ports in the US have since reported a sharp drop in trade, especially from China, while businesses from Barbie-maker Mattel to Adidas saying they are looking at price increases.

Surveys indicate that business and consumer confidence have taken a hit, while analysts have warned that the risk of recession has ramped up significantly since the start of the year.

Trump, who promised lower rates while campaigning for re-election last year, has called on the Fed to lower rates “pre-emptively” and flirted with firing the head of the bank, criticising him as “a major loser” and “Mr Too Late” for not cutting rates fast enough.

The European Central Bank cut interest rates last month, citing concerns about the economy due to the trade tensions. The Bank of England is widely expected to take a similar step this week.

In the statement announcing Wednesday’s decision, which was unanimous, the Fed warned that “the risks of higher unemployment and higher inflation have risen”.

“Uncertainty about the economic outlook has increased further,” the bank added.

Ahead of this week’s meeting, Mr Powell said policymakers were facing a “very difficult judgement” but that the bank would be guided by data, not politics.

The US economy shrank in the first three months of the year for the first time since 2022. Officials said those figures were driven by firms rushing goods into the country ahead of tariffs rather than a decline in wider activity.

Hiring remained unexpectedly strong last month, keeping the unemployment rate near historic lows of 4.2% while the US stock market has largely recovered from the sharp declines it saw last month.