The US central bank is called the Federal Reserve. People often say Fed for short. The Fed keeps the key interest rate the same. It stays between 3.5 and 3.75 percent.
This is the second pause in a row. The Fed has worries. There is a war with Iran. The war makes business uncertain.
The war makes the price for oil go up. This makes many things cost more. Experts call this inflation. The Fed wants to slow down inflation.
Interest rates change loans and saving money. High rates make loans cost more. This slows down the growth of business. Low rates help business grow.
President Donald Trump wants lower rates. He asks the Fed for this. But the Fed decides on its own. It wants to keep prices stable first.
Jerome Powell is the head of the Fed. He stays in his job until May. Then the Fed gets a new head. Donald Trump suggested Kevin Warsh for this job.
