The US Federal Reserve decided to hold its benchmark interest rate at 4.25 percent to 4.5 percent amidst increasing economic uncertainty influenced by tariffs. This decision, which was unanimous, comes despite pressure from President Trump to reduce rates. The Fed noted rising risks of both inflation and unemployment due to these tariffs. Economists anticipate possible rate cuts later this year, however, the Fed emphasizes its commitment to maximizing employment and managing inflation effectively, citing these uncertainties as a critical influence on their monetary policy decisions.
The US Federal Reserve maintained its interest rates at 4.25% to 4.5%, despite President Trump's calls for lower rates amid growing economic uncertainty.
The Fed attributed the heightened uncertainty to Trump's tariffs, which threaten to raise both inflation and unemployment levels across the economy.
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