📊 Rate held steady: Fed maintains 4.5%, Powell warns of trade-driven inflation pressures
Following the latest meeting, the Fed left interest rates unchanged at 4.5%. Jerome Powell noted that while the economy is strong and the labor market stable, inflation remains slightly elevated.
He attributed a dip in consumer sentiment to Trump’s trade policy and noted a recent uptick in short-term inflation expectations due to tariff-related pressures.
Powell also emphasized the Fed’s readiness for potential disruptions and stated that the full impact of the trade measures on consumer behavior is still being evaluated.
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