Fed hints at stagflation risks, holds rates steady amid tariff impact
Fed Chairman Powell said upside risks to both inflation and unemployment have increased since the central bank's last meeting in March.
The Federal Reserve held its benchmark rate steady for the third consecutive time this year following its two-day meeting in Washington, and noted that upside risks to both inflation and unemployment have increased in the world's biggest economy.
The Fed left its key Federal Funds Rate unchanged at between 4.25% and 4.5%, where it has remained since the central bank last cut rates in December. But by raising the risks of stagflation, the Fed suggested that near-term rate cuts are increasingly unlikely.
