Washington D.C. - The Federal Reserve announced today that it will hold interest rates steady, maintaining its current wait-and-see approach to monetary policy. Federal Reserve Chair Jerome Powell addressed reporters following the decision, emphasizing the uncertainty surrounding the economic outlook. He stated that the central bank's next move, whether it be raising or lowering rates, is "not at all clear."
The decision comes as officials grapple with the potential economic consequences of President Trump's recently implemented tariffs. The tariffs are expected to put upward pressure on prices, potentially leading to higher inflation. At the same time, economists worry that the tariffs could disrupt global trade and slow down economic growth.
"We are carefully monitoring the economic data and will adjust our policies as needed to achieve our goals of maximum employment and price stability," Powell said. He reiterated the Fed's commitment to remaining data-dependent and flexible in its approach to monetary policy. The central bank will continue to assess the evolving economic situation and make decisions based on the latest information available.
Federal Reserve Holds Interest Rates Steady, Future Uncertain
The Federal Reserve decided to keep interest rates unchanged, adopting a cautious stance. Federal Reserve Chair Jerome Powell stated the central bank's next move is "not at all clear." Officials are closely watching potential impacts of President Trump's tariffs, which could lead to both higher inflation and slower economic growth. The Fed will continue to monitor economic data before making further decisions.