Resisting WH pressure\, Fed holds rates steady

Despite mounting and persistent pressure from the White House calling for the Federal Reserve to slash interest rates, Fed Chairman Jerome Powell held key interest rates steady on Wednesday.

The Fed's lending rate has remained the 2.25 to 2.50 percent range since December.

Powell pointed to a solid economy sprinkled with a few pockets of weakness for maintaining a pledge to remain patient - offering few hints at whether he thinks the next rate move will be up or down.

SOUNDBITE (ENGLISH) FEDERAL RESERVE CHAIRMAN JEROME POWELL, SAYING: "Economic growth and job creation have both been a bit stronger than we anticipated.

Overall the economy continues on a healthy path and the committee believes that the current stance of policy is appropriate." Powell also believes the U.S. economy is benefitting from reduced global risks - specifically when it comes to Brexit and easing trade tensions between Washington and Beijing.

But some on Wall Street are betting the Fed will have to cut rates before the year is out.

Why?

They focus on the Fed's admission Wednesday that inflation remains stubbornly low But Powell said he thinks inflation will eventually heat up... That spooked investors, erasing all of Wednesday's gains on Wall Street.

The stock market has rebounded sharply since the end of last year, but that's been little consolation to President Trump..

Who wants the Fed to slash rates by a full percent.

But the President's wishes?

Not a top priority, says the Fed chief.

SOUNDBITE (ENGLISH) FEDERAL RESERVE CHAIRMAN JEROME POWELL, SAYING: "We are a non-political institution and that means we don't think about short-term political considerations.

We don't discuss them and we don't consider them in making our decisions - one way or the other." What the Fed does consider is how strong or how weak the economy is - and it will get an update on that Friday when the latest hiring and unemployment figures are released.