The Federal Reserve declined to cut the U.S. interest rate at the Wednesday meeting of its board of governors, keeping the benchmark at 3.5–3.75 percent. Federal Reserve Chair Jerome Powell noted that the strong economy and stable levels of unemployment made further rate cuts unnecessary in the view of the board. Inflation also remains somewhat elevated, a circumstance lower interest rates could aggravate.

Two members of the board dissented and voted for a quarter-point cut, including Stephen Miran, who was appointed by President Donald Trump to fill a temporary vacancy on the board. The other dissenter, Christopher Waller, is on the shortlist of candidates to replace Jerome Powell as Federal Reserve Chair when his term expires in May of this year.

The decision comes as the central bank is embroiled in a controversy over its independence. The Trump administration is being sued for its dismissal of Federal Reserve governor Lisa Cook, a Biden appointee, after she was accused of committing mortgage fraud by the Federal Housing Finance Agency. (She denies the allegation.) Fed chair Jerome Powell is also being investigated by the Trump administration for alleged financial misconduct in the renovation of Federal Reserve buildings.