Federal Reserve warns of inflation and jobs risks amid Trump's erratic trade strategy
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Source: The Guardian
The Federal Reserve kept interest rates on hold and called out growing dangers in the US economy amid Donald Trump’s erratic rollout of an aggressive trade strategy.
Jerome Powell, the US central bank’s chair, cautioned that the president’s tariffs are likely to lift prices, weaken growth and increase unemployment if maintained.
Fed policymakers cautioned that “the risks of higher unemployment and higher inflation have risen” as they opted to maintain the benchmark interest rate for the third time in a row. “Uncertainty about the economic outlook has increased further,” they said in a statement.
[snip]
US gross domestic product (GDP) shrank for the first time in three years during the first quarter, raising fears of recession as Trump’s tariffs – and threats of tariffs – cast a shadow over the world’s largest economy.
Read more: https://www.theguardian.com/business/2025/may/07/federal-reserve-interest-rate-decision
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