US Federal Reserve Keeps Interest Rates Unchanged
The US Federal Reserve has decided to keep the policy rate unchanged at 4.25-4.50% due to uncertainty surrounding President Donald Trump’s tariff policies. The Fed is cautious about the potential impact of tariffs on inflation and economic growth.
Key Points:
- GDP growth forecast lowered to 1.4% in 2025
- Inflation expected to rise to 3% by year-end
- Unemployment predicted to increase to 4.5%
- Fed Chair Jerome Powell warns of potential stagflation risks
The Fed’s decision reflects its wait-and-watch approach, with future rate cuts dependent on economic data. Despite healthy economic conditions, the Fed remains vigilant about inflation and growth prospects.
