Europe EditionFed holds rates steady as it notes rising uncertainty and stagflation risk
- The Federal Reserve held its key interest rate steady at 4.25-4.50% on May 7, 2025, citing tariff-related economic uncertainties.
- Rising tariffs imposed by the Trump administration have created uncertainty about how import taxes will impact inflation and employment.
- Fed officials noted risks of higher inflation and unemployment have increased, with inflation above their 2% target at 2.3% overall and 2.6% core in March.
- Chair Jerome Powell said Fed policy officials are in a 'wait and see' mode regarding tariffs' impact, while many economists expect rate cuts later this year.
- Maintaining current rates suggests the Fed is balancing potential inflation pressures against growth risks amid significant economic uncertainty caused by tariffs.
397 Articles
397 Articles
Associated Press News
Asian shares trade higher after Wall Street climbs moderately as Fed holds rates steady
Asian shares are rising moderately after a lackluster finish on Wall Street, with most shares ticking higher after the Federal Reserve left its main interest rate unchanged, as was widely expected.
The US Federal Reserve maintained its interest rates on Wednesday and noted that there are higher risks that inflation and unemployment will escape its objectives, in an apparent reference to the tariffs of President Donald Trump. US central bank leaders unanimously voted to maintain the reference rate between 4.25% and 4.50%, the Fed said in a statement. “Uncertainty about economic prospects increased again,” added the agency, which considers t…
The US Federal Reserve keeps interest rates unchanged. Therefore, the Fed meeting was primarily about Donald Trump. US President Jerome Powell maneuvered out the head of the central bank.
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