๐ US Federal Reserve Leaves Key Interest Rate at 4.5% โ Powell Discusses Inflation, the Labor Market, and the Impact of Trump's Trade Policy
The US Federal Reserve left its key interest rate unchanged at 4.5%. Federal Reserve Chairman Jerome Powell stated that the US economy is in stable condition.
However, inflation is slightly above the target of 2%. Consumer sentiment has recently declined, which Powell directly linked to former President Donald Trump's trade policy. Short-term inflation expectations have risen due to the new tariffs.
Powell emphasized that the current monetary policy stance is well prepared for unexpected developments. At the same time, the actual impact of the trade measures on consumer spending remains to be assessed. The labor market, however, remains stable.