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09/05/2025 07:30

FED concerns about unusual scenario

Anh Thu

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The Federal Reserve (FED) kept interest rates unchanged in the range of 4.25%-4.5% on May 7, despite President Donald Trump's call for lower borrowing costs.

FED also warned about the risk of both unemployment and inflation rising together - an unusual combination, putting this central bank in a difficult position.

This is the third consecutive time the FED has kept interest rates unchanged in regular meetings, after three cuts at the end of last year. Many economists and Wall Street investors predict that the FED will lower interest rates this year. However, President Donald Trump's new tariffs have had a significant impact on the US economy and the policies of the FED.