Today's Edition
WASHINGTON (AFP)
The US Federal Reserve on Wednesday announced another rate cut pause and warned of higher risks to its inflation and unemployment goals, a likely reference to President Donald Trump's tariffs.
Policymakers voted unanimously to hold the US central bank's key lending rate at between 4.25 percent and 4.50 percent, the Fed said in a statement.
The bank has a dual mandate to act independently to tackle inflation and unemployment, primarily by hiking, holding, or easing its benchmark lending rate.
The Fed said that "swings in net exports" did not appear to have affected the solid economic activity -- a nod to the pre-tariff surge in imports in the first quarter ahead of the introduction of Trump's "liberation day" tariffs.
The US president introduced steep levies last month on China, and lower "baseline" levies of 10 percent on goods from most other countries, sparking weeks of turbulence in the financial markets.
The White House also slapped higher tariffs on dozens of other trading partners, and then abruptly paused them until July to give the United States time to renegotiate existing trade arrangements.
Data published in recent weeks point to an economic contraction in the first quarter of the year, while the unemployment rate has hovered close to historic lows, and the inflation rate has trended towards the Fed's long-term target of two percent.
