Fed Holds Interest Rates Steady, Warns Of Inflation

Axios reports:

The Federal Reserve kept interest rates steady for the third consecutive meeting on Wednesday, as it cautioned about the economic fallout from tariffs. The Fed warned about the potential of higher prices and a spike in joblessness, as President Trump presses on with aggressive efforts to reset global trade.

The Fed’s rate-setting committee voted unanimously to keep the federal funds rate at a range of 4.25% to 4.5%.

New language in the Fed’s closely watched policy statement said the committee “judges that the risks of higher unemployment and higher inflation have risen.” The Fed maintained language that said the economic outlook looked uncertain, though the statement added that uncertainty “has increased further.”

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