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Federal Reserve warns of impact of Trump tariffs as US interest rates held
The US central bank held interest rates as it said Trump tariffs have risked higher inflation and unemployment amid "so much" uncertainty.
The announcement is likely to anger President Donald Trump, who has made the taxes on imports one of his signature policies and had threatened to fire the Federal Reserve chair, Jerome Powell. On Wednesday, the Federal Reserve, known as the Fed, held rates at 4.25%-4.5%.
Unlike the UK, the US interest rate is a range to guide lenders rather than a single percentage. Money blog: Dynamic pricing coming to UK restaurants It means borrowing costs have remained unchanged for Americans, something Mr Trump had wanted to reduce.
Interest rates have been raised by the Fed to bring down high inflation in the wake of Russia's invasion of Ukraine and the supply chain crisis brought about by COVID-19 lockdowns. Fears of inflation rising higher as tariffs make goods on US shelves costlier, and of job losses from reduced spending, led the Fed to remain cautious.
The full effect of the tariffs is "highly uncertain.
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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