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Federal Reserve leaves interest rate unchanged, bucking Trump demands
- On Wednesday, the U.S. Central bank maintained its benchmark interest rate at 4.3 percent for the third consecutive meeting.
- The decision followed increased risks of both higher inflation and higher unemployment, driven largely by uncertainty from President Trump's sweeping tariff policies.
- Officials noted solid economic activity and labor market conditions, but tariffs have injected uncertainty, causing many firms to delay investments and withdraw 2025 financial forecasts.
- Fed Chair Jerome Powell indicated that the current policy interest rate is appropriate for now, as the Federal Reserve prefers to adopt a cautious approach while monitoring how tariffs may affect the economy.
- The Fed's stance suggests possible rate cuts later in 2025 if economic slowing and rising unemployment materialize, while tariffs continue to complicate inflation and employment goals.
84 Articles
84 Articles
Uncertainty is the name of the game
This week, the Federal Reserve opted to leave short-term interest rates alone, despite concerns about the rising risks of a weakening U.S. economy. In this episode, we speak with Sudeep Reddy of Politico and Courtenay Brown of Axios about the Fed's latest decision and the current state of trade negotiations. Plus, why NOAA is retiring its billion-dollar disaster database and how New York City is moving to decarbonize its pension fund.
Federal Reserve Leaves Key Rate Unchanged as It Sees Risk of Higher Prices and Higher Unemployment
WASHINGTON (AP) — The Federal Reserve kept its key interest rate unchanged Wednesday, brushing off President Donald Trump’s demands to lower borrowing costs, and said that the risks of both higher unemployment and higher inflation have risen, an unusual combination that puts the central bank in a difficult spot. The Fed kept its rate at 4.3% for the third straight meeting, after cutting it three times in a row at the end of last year. Many econo…
Fed leaves rates unchanged as Powell warns on tariffs
What happened The Federal Reserve voted unanimously Wednesday to keep interest rates unchanged, disregarding President Donald Trump's demands for lower borrowing costs as his global trade war roils the U.S. and global economies. Who said what Trump's "large increases in tariffs," if "sustained," are "likely to generate a rise in inflation, a slowdown in economic growth and a rise in unemployment," Fed Chair Jerome Powell said at an afternoon pre…
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