Fed Keeps Interest Rates Steady

The U.S. Federal Reserve (Fed) has kept interest rates unchanged in its May meeting, warning that inflation and unemployment risks are rising.

On May 7, after a 2-day policy meeting, the U.S. Federal Reserve (Fed) decided to maintain the benchmark interest rate at 4.25-4.50%. This level has been upheld since the end of last year.

"The economy continues to show solid growth overall," the Fed noted. The agency believes that the decline in GDP in the first quarter was due to businesses and households increasing imports to avoid new tariffs. The Fed also assessed that the labor market remains strong and inflation is "at a high level," repeating phrases from previous statements.

However, this statement emphasizes that new risks are emerging, which may force them to make difficult choices in the near future. "The economic outlook is increasingly uncertain. The Federal Open Market Committee (FOMC) is closely monitoring the situation. They assess that inflation and unemployment risks are rising."