Despite President Trump’s calls for lower interest rates, the Federal Reserve left its benchmark rate unchanged, warning of higher unemployment and higher inflation because of tariffs. Da Wall Street Journal
The Federal Reserve warned that tariffs were raising risks of higher unemployment and higher inflation when officials unanimously agreed to hold interest rates steady on Wednesday.
“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” Fed Chair Jerome Powell said at a news conference.
