Fed Holds Interest Rates Steady Amid Economic Uncertainty

The key interest rate in the USA remains unchanged by the central bank Federal Reserve (Fed). The rate thus remains in the interval 4.25–4.50 percent.

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Fed Holds Interest Rates Steady Amid Economic Uncertainty
Photo: Richard Drew/AP/TT

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But the Fed points in its decision to the fact that the American economy is surrounded by increasing uncertainty, among other things due to President Donald Trump's tariffs – which are sometimes announced, sometimes withdrawn.

The central bank still expects two more interest rate cuts this year, which is in line with the forecast made in December last year.

The Fed also predicts that inflation in the US will rise and that growth in 2025 will be lower than previously thought. The central bank was not unanimous in the interest rate decision – one member was dissenting.

Wednesday's message was expected. It was also the second time during Donald Trump's presidency that the Fed decides not to change the interest rate. Previously, the central bank lowered the key interest rate three times in a row.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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