FED LEAVES INTEREST RATES UNCHANGED – The Federal Reserve said the risks of higher inflation and unemployment had risen, clouding the economic outlook
The Federal Reserve held interest rates steady but said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the U.S. central bank grapples with the impact of Trump administration tariff policies.
Speaking at a press conference following the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell said “despite heightened uncertainty, the economy is still in a solid position.”
He noted Fed policy will need to be nimble and said “we believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments.”
Powell also noted that trade policy remains a source of uncertainty that affirms the Fed’s need to be in a wait-and-see mode.
The Fed’s policy rate has been unchanged since December as officials struggle to estimate the impact of President Donald Trump’s import tariffs, which has been said to have raised the prospect of higher inflation and slower economic growth this year.
