Jerome Powell

The rate decision comes against a backdrop of escalating friction between the Fed and the White House.

The central bank held rates steady through the first five meetings of 2025.

Smaller banks generally hold a higher share of their assets in CRE loans compared to large banks.

The Chicago Fed chief said it makes sense to slow rate cuts at some point amid uncertainty over where the neutral rate is.

Firms cited the possibility of tighter restrictions on immigration and higher import tariffs under a Trump administration, which could spur inflation and alter the Fed’s course.