The Federal Reserve kept the interest rates steadily during its first meeting in the second presidential term of Donald Trump.
The central bank had a benchmark loan costs between 4.25 percent and 4.5 percent at the end of his two -day meeting on Wednesday.
It comes after Trump said he wants the Fed to leave rates shortly after he had recorded the presidency last week.
The president said that he would “demand that interest rates will fall immediately.”
The shares fell after the announcement, with the S&P 500 by 0.7 percent, the industrial average of Dow Jones fell by 0.4 percent and the Nasdaq that tumbled more than 1 percent.
The FED also warned about inflation in its statement after the meeting, in which an important reference was removed from the December statement stating that inflation 'made progress' in the direction of the goal of 2 percent.
Instead, the statement said: “Inflation remains somewhat increased.”
Consumer prices rose by 2.9 percent compared to a year earlier in December, which was the largest monthly increase in nine months.
Investors had largely expected the Fed to keep the interest rates stable during the first meeting of the year.
Now they will keep a close eye on all indications of whether the central bank can lower the rates later this year.
The Fed had started reducing the rates at the end of last year, after an aggressive series of interest rate increases.
This is a crushing new story. Updates to come.
