Economic Alert! The Fed warns of stagflation risks after keeping rates stable
In its meeting on May 7, 2025, the Federal Reserve decided to keep interest rates in the range of 4.25% to 4.5% for the third consecutive time, despite pressures from President Trump to lower them.
Fed Chairman Jerome Powell expressed concerns about the simultaneous rise in inflation and unemployment, a combination known as stagflation, exacerbated by the tariff policies of the Trump administration.
Despite an economy showing signs of strength, the Fed adopts a 'wait and see' stance, closely monitoring the effects of trade tensions and economic uncertainty.
What do you think? Is the U.S. economy on the brink of a crisis or is it just a strategic pause?