US EditionFed holds rates steady as it notes rising uncertainty and stagflation risk
- The Federal Reserve held interest rates steady at 4.25-4.50% on May 7, 2025, amid rising economic uncertainty and stagflation risks in the U.S.
- The decision followed increased tariffs on imports, some as high as 145%, and ongoing trade tensions prompting cautious policy amid uncertain economic effects.
- While inflation remains above the Fed’s 2% target, at 2.6% core prices year-over-year, growth slowed with GDP declining 0.3% in Q1 2025, partly from tariff-driven import shifts.
- Chairman Powell noted an increased likelihood of rising unemployment and inflation, emphasizing that the Federal Reserve remains prepared to adjust its policies promptly in response to evolving economic conditions.
- This approach reflects the Fed’s attempt to balance risks of slowing growth and accelerating inflation as tariff impacts continue, with consumer stress increasing among lower-income households.
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Associated Press News+49 Reposted by 49 other sources
Asian shares trade higher after Wall Street climbs moderately as Fed holds rates steady
Asian shares are rising moderately after a lackluster finish on Wall Street, with most shares ticking higher after the Federal Reserve left its main interest rate unchanged, as was widely expected.
·United States
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In the United States, the Federal Reserve warns against stagflation
At the end of its Monetary Policy Committee on Wednesday, 7 May, the US central bank left its key rates unchanged, while at the same time believing that the risks of rising unemployment and rising prices have increased.
·Paris, France
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Coverage Details
Total News Sources365
Leaning Left50Leaning Right45Center115Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 24%
C 55%
R 21%
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