Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
WASHINGTON, May 7 (Xinhua) — The U.S. Federal Reserve on Wednesday left its target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent amid expectations that the Trump administration’s tariff policies will lead to higher inflation and slower economic growth.
“Uncertainty about the economic outlook is increasing,” the Federal Open Market Committee, the Fed’s policymaking arm, said in a statement following its two-day meeting.
“The Committee closely monitors the risks to both sides of its dual mandate and believes that the threats to higher unemployment and inflation have increased,” the statement said.
With tariff chaos deepening and inflation risks resurfacing, economists and market participants are increasingly concerned about a slowdown in economic growth, and some are worried about a hit to the labor market and a possible recession. In this regard, Fed officials have also expressed their concerns.
“I wouldn’t be surprised if you start to see more layoffs and higher unemployment going forward, especially if the big tariffs come back,” Fed Governor Christopher Waller said in a recent interview with Bloomberg. “I would expect to see more rate cuts, and sooner rather than later, as soon as there’s a significant deterioration in the labor market,” he added. –0–