The U.S. Federal Reserve (Fed) has decided to keep interest rates unchanged at its latest meeting. It was reported that this decision was made unanimously and that the federal funds rate target range will be held steady between 4.25 and 4.50 percent.
Fed officials chose to keep interest rates steady at this meeting to evaluate the impact of U.S. President Donald Trump's policies on the economy. The new customs tariffs implemented by the Trump administration and the retaliatory measures taken by trading partners in response have weakened consumer confidence in the country and increased inflation expectations.
The postponement of some taxes has created uncertainty regarding how trade wars will affect the economy. This situation has made it difficult for the Fed to determine a clear policy, leading it to adopt a wait-and-see strategy.
Fed Chair Jerome Powell had previously stated in his remarks that the U.S. economy is strong and that they are in no rush to lower interest rates.
News Source: 12punto
