The US Federal Reserve has decided to keep interest rates unchanged while signaling potential cuts in the future. President Donald Trump’s pressure for lower rates, coupled with his tariff policies, has led the Fed to raise its inflation forecast to 3% from 2.7% and lower growth projections to 1.4%. This marks a significant downgrade in economic expectations. Although uncertainty has lessened, concerns remain high over the impact of tariffs on global economic stability. The Fed continues to assert its independence in decision-making based on economic data.
Policymakers at the central bank expect inflation to increase by an average rate of 3% this year, up from a previous estimate of 2.7%.
The Fed has repeatedly warned of an uncertain road ahead as Trump's aggressive tariffs disrupt the global economy and raise concerns about price growth.
Federal interest rates have remained flat after some cuts in 2024 for the first time since 2020, indicating a cautious approach from the Fed.
Uncertainty about the economic outlook has diminished but remains elevated, reflecting the ongoing challenges in the US economy.
Collection
[
|
...
]