U.S. Fed holds interest rate — Powell highlights tariff risks, stable labor, and cautious outlook
At 4.5%, the interest rate remains unchanged. Fed Chair Powell described the economy as resilient, but noted that short-term inflation expectations have grown due to tariffs.
Consumer sentiment has weakened amid Trump’s trade agenda, and its full effect on household spending remains unclear.
Powell reassured markets that the monetary policy stance is built to absorb future shocks.