U.S. Federal Reserve Chair Jerome Powell on Wednesday said there is no place for the central bank to consider government financing needs when setting interest rate policy.

The central bank - whose chairman Jerome Powell has been urged by the US President to slash rates to 1% - instead held them at between 4.25% and 4.5%.

The Federal Reserve's decision to maintain interest rates underscores its independence amidst political pressure. As President Trump pushes for rate cuts, Fed Chair Jerome Powell remains committed to a cautious approach,