In today's meeting, Federal Reserve Chairman Jerome Powell stated that the central bank will keep interest rates unchanged until the effects of the recent tariffs on the U.S. economy become clear.
Powell noted that the tariffs imposed by the Trump administration were larger than expected, contributing to rising inflation rates and a slowdown in economic growth.
He added that the central bank is in a position to wait and monitor economic developments before making any new decisions regarding monetary policy.
His statements caused financial markets to decline, with the S&P 500 index dropping by 2.15%, the yield on 10-year Treasury bonds falling by 2.7 basis points to 4.2961%, and the dollar index recording a decrease of 0.6%.
Powell clarified that the central bank faces significant challenges in balancing inflation and supporting economic growth, especially in light of new trade policies that add more uncertainty to the global economic landscape.