US Fed keeps rates steady for 4th straight meeting, remains open for cuts
US Federal Reserve decided on Wednesday to keep interest rates unchanged, while indicating that reductions could still be on the table in the second half of the year
 "US Fed keeps rates steady for 4th straight meeting, remains open for cuts")
The US Federal Reserve’s Federal Open Market Committee (FOMC) has once again opted to maintain its benchmark interest rate, keeping it at 4.25 per cent to 4.5 per cent. This marks the fourth straight meeting where rates have remained unchanged. The decision was backed unanimously by voting members of the committee. In a statement released after the meeting, the Fed said, “Inflation remains somewhat elevated” and noted that “recent indicators suggest economic activity has continued to expand at a solid pace.” It added that the “unemployment rate remains low” and that “labour market conditions remain solid,” signalling continued confidence in the overall strength of the economy.
Powell flags rising goods inflation linked to tariffs
Federal Reserve Chair Jerome Powell said that Fed policy makers expect inflation in goods prices to go up over the course of the summer as the impact of President Donald Trump's tariffs work their way to US consumers.
"We've had goods inflation just moving up a bit," Powell told a news conference after the Fed held rates unchanged. "We do expect to see more of that over the course of the summer." Powell said it takes time for tariffs to work through the goods chain of distribution, noting many goods being sold by retailers were imported months before tariffs were imposed.
"So we're beginning to see some effects, and we do expect to see more of them over coming months," he said. "We do also see price increases in some of the relevant categories, like personal computers and audio visual equipment and things like that attributable to tariff increases."