The Federal Reserve chose to keep interest rates unchanged while expressing rising concerns about the U.S. economy, particularly due to President Trump's aggressive trade policies. Fed Chair Jerome Powell warned that ongoing tariffs are expected to inflate prices, hinder growth, and elevate unemployment. This decision marks the third consecutive hold on rates as concerns about inflation expectations rise. GDP contraction in the first quarter further raises fears of a recession, amidst Trump's insistence on tariff strategies which contradict his administration's economic revitalization plans.
Jerome Powell, the Fed chair, emphasized that sustaining the announced tariff increases will likely lead to higher inflation, slower economic growth, and increased unemployment.
Fed policymakers noted that the risks of elevated unemployment and inflation have risen, prompting them to maintain interest rates amid increased economic uncertainty.
Collection
[
|
...
]