Last Updated 6 days by Amnon J. Jobi | Amnon Front Page
Despite pressure from President Donald Trump to lower interest rates, the Federal Reserve on Wednesday left its benchmark rate unchanged.
The central bank maintained its target range for the federal funds rate at 4.25% to 4.50%1 percentage point lower than a year ago, when rates reached a 23-year high.
The decision followed a two-day meeting to assess the health of the U.S. economy.
In a statement, the Fed said it is attentive to the risks to both sides of its dual mandate and believes the chances of both higher unemployment and rising inflation have increased.
RELATED STORY | The bond market explained: What it means for the finances of everyday consumers
Fed Chair Jerome Powell cited uncertainty stemming from Trumps tariff policies, warning that sustained tariff increases could drive up inflation, slow economic growth and raise unemployment.
At the same time, Powell pointed to signs of continued strength in the economy. He said the U.S. is growing at a solid pace, with a strong labor market and inflation running slightly above 2%.
Its an economy that has been resilient, Powell noted.
RELATED STORY | Ford to raise prices on 3 vehicles made in Mexico due to Trump’s tariffs
Be First to Comment