Federal Reserve holds interest rates as Trump piles on pressure
The US Federal Reserve left interest rates unchanged after its first rate-setting meeting of the year on Wednesday, resisting enormous pressure from the White House to lower rates,A majority of members in the Fed’s federal open market committee (FOMC) voted to pause interest rate cuts after slashing rates three times in the fall,Rates currently sit at a range of 3,5% to 3,75%.
The Trump administration has put unprecedented pressure on the Fed chair, Jerome Powell, to cut rates, with Donald Trump launching personal attacks on Powell and the justice department opening a criminal investigation into his handling of the refurbishment of the central bank’s offices.The FOMC has 12 voting members and meets just eight times a year to set interest rates.The stakes of each meeting have been high during Trump’s second term.Though economists say that the Fed’s independence, as the US central bank, is key for economic stability, the president has unabashedly tried to bend the Fed to his economic agenda.Cutting interest rates can spur short-term economic activity, though at the risk of pushing up prices in the long term.
But Trump has claimed that the Fed not lowering interest rates costs the US economy “hundreds of billions of dollars”.Fed officials have resisted these calls.In December, at the last FOMC meeting, Powell implied the Fed would be pausing cuts for the time being.“We’re well positioned to wait and see how the economy evolves from here,” he said.After the Fed meeting, Trump called Powell “stiff” and said that the rate drop “could have been doubled”.
The full extent of Trump’s anger would not be seen until 11 January, when Powell – whose term as chair is up in May – announced he was under criminal investigation.The investigation is focused on congressional testimony that Powell gave last summer on renovations at the Fed headquarters, which has gone over budget.Trump alleges Powell committed fraud, though the Fed chair has said that the renovations were necessary safety upgrades to decades-old buildings.In a recorded statement, what many said was a remarkable defiance of Trump’s bullying, Powell called the investigation a “pretext”.“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation.”The investigation remains ongoing, despite swift backlash from business leaders and some Republican lawmakers.Powell is set to speak at the regularly scheduled press conference that takes place after FOMC meetings.This will be the first time Powell has fielded questions since being targeted by a justice department investigation.
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When Abdul’s Lebanese Restaurant closed earlier this month, it was a shock. A beloved fixture of inner Sydney’s landscape since 1968, the restaurant fed celebrities, broke students and anyone in need of a hearty kebab at the end of a night out.For Hiba Damaa, whose parents Dib and Nizam Ghazal opened the restaurant and named it after her eldest brother Abdul – who eventually ran it with his two brothers – it represented the pioneering spirit of early Lebanese migration.“Abdul’s originated as a Lebanese sweets and pastry shop run by my brother-in-law,” she says. “When he wanted to move on, my parents started selling falafel sandwiches
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Clootie dumpling is, let’s face it, a much better name than spotted dick, but if you were fond of the latter at school, you’ll probably enjoy this very similar, classic Scottish steamed pudding. Not too sweet and, thanks to the apple and carrot, lighter than it sounds, this is a proper winter dessert and the perfect end to a Burns supper, especially when served with custard or ice-cream.Prep 20 min Cook 3 hr 15 minServes 8-10110g fresh suet, or dried suet or a vegetarian alternative225g plain flour, plus extra for dusting½ tsp baking powder ½ tsp fine salt 1 tsp mixed spice 1 tsp ground ginger ¼ tsp ground allspice ¼ tsp nutmeg 110g soft brown sugar 75g fine fresh breadcrumbs 25g coarse oatmeal, or 25g extra breadcrumbs 200g currants 100g sultanas or raisins – golden ones look especially pretty 1 large green apple 1 carrot Finely grated zest of 1 unwaxed orange or lemon 1 egg, beaten2 tbsp treacle About 60ml milkHalf-fill a large saucepan for which you have a lid with water, then bring to a boil (if you have a pan with handles on the side, so much the better). Soak a clean tea towel (a smooth one, rather than anything fluffy or towel-like) or cheesecloth in water. And have ready some butcher’s string, or similar
Tin Roof Cafe, Maldon, Essex: ‘Come for topsoil, stay for the shortbread’ – review
A tipoff to try the Tin Roof Cafe in Maldon came with prior warning: I wouldn’t get a table easily as this all-day spot serving brunch, lunches and sweet stuff from the in-house bakery is constant, scone-fuelled bedlam. Red brick walls, greenery throughout, alfresco spaces, allotments growing fresh veg and herbs. Capacious, family-run, dog-welcoming, pocket-friendly. There’s bubble and squeak with hand-cut ham, Korean-style chicken burgers and a vegan burger called, rather brilliantly, “Peter Egan” after, I’m guessing, the animal-loving actor who played Paul in Ever Decreasing Circles.Could this place be any more adorable? No, but still, brace yourself
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We have Robert Burns to thank for perhaps the greatest poem about any dish ever – a poem so good that it inspires an entire nation to dedicate an evening of each year to eating haggis, even though most people find it kind of gross.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.No? If the “Great Chieftan o’ the Puddin-race” were that delicious, we’d all be eating it all the time, surely? And yet Burns’ Address to a Haggis is enticing enough to dispel any such doubts just once a year
Helen Goh’s recipe for Breton butter cake with marmalade | The sweet spot
A Breton butter cake is a proud product of Brittany’s butter-rich baking tradition: dense, golden and unapologetically indulgent. True to its origins, my version uses salted butter, with an added pinch of flaky salt to sharpen the flavour. It also takes a small detour from tradition: a slick of marmalade brings a fragrant bitterness, while a handful of ground almonds softens the overall richness and lends a tender crumb. The result is still buttery and luxurious, but with a brighter, more aromatic edge.Brief stints in the freezer help firm up the dough between layers, making it easier to spread the marmalade without disturbing the base
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