US Fed begins policy meeting, likely to maintain interest rates
The US Federal Reserve just kicked off a two-day meeting and, despite President Trump's loud calls for a big rate cut, they're expected to keep interest rates steady at 4.25%-4.50%.
After slashing rates during the Covid-19 crisis, the Fed is now being extra careful—mainly because tariffs on things like steel and cars are making the economic outlook less predictable.
Fed more cautious about inflation and jobs
Those tariffs (which Trump put in place) have made the Fed more cautious about inflation and jobs.
Analysts are watching closely to see how these trade moves could impact prices and unemployment going forward.
As Ryan Sweet from Oxford Economics puts it, tariffs tend to push up inflation slowly over time, so the Fed is keeping an eye on global risks—especially anything that could send oil prices higher.