The Federal Reserve has kept US interest rates on hold for the third meeting in a row, as officials highlighted growing concerns that President Donald Trump’s tariffs will trigger a fresh burst of inflation and weaken the jobs market.
“Uncertainty about the economic outlook has increased further,” the policymaking Federal Open Market Committee said on Wednesday, after voting unanimously to keep the federal funds target at a range of between 4.25 and 4.5 per cent. The committee added that, since they last met in March, “the risks of higher unemployment and higher inflation have risen”.
Fed officials have not cut borrowing costs since December and have signalled that they will remain on pause as they weigh the effects of Trump’s tariffs on the world’s biggest economy.