The Federal Reserve warns of high economic risks because it maintains fixed rates

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The Federal Reserve has kept interest rates on the third consecutive meeting, as officials highlighted the increasing concerns that President Donald Trump’s tariff will lead to a new outbreak of inflation and the job market weakens.

“The uncertainty about economic expectations is more,” the Federal Open Market Committee said on Wednesday. The committee added that since they last met in March, “the risk of high unemployment and high inflation has increased.”

Federal reserve officials have not said of borrowing costs since December and indicated that they will remain temporarily stopping because they are weighing effects Trump’s tariff On the largest economy in the world.

At a press conference after the announcement of Wednesday, feeding President Jay Powell said that although the American economy is still “in good health”, the fees can put the central bank in a position in which two dual mandate are challenged to enhance the maximum employment and 2 percent of inflation.

The preferred personal consumption expenses index of the Federal Reserve increased at an annual rate by 2.3 percent in March, while the unemployment rate remained defeated at 4.2 percent in April.

Powell also repeated his recent statements that the central bank was not “in a hurry” to change the policy because it establishes the effects of definitions. He said, “The right thing to do is waiting for more clarity.”

Recent reports have shown that demand all over the world is the largest economy that has been strong at the beginning of the year. However, investigative studies indicated that companies and consumers are very concerned about how Trump’s duties affect each of them.

“I can’t remember time when the Federal Reserve upgraded the risk of growth and inflation very starkly,” said Jay Leipas, the chief fixed income strategy in Jani Montgomery Scott.

The Federal Reserve maintained the patient’s approach despite the repeated calls of the US President to reduce borrowing costs. Trump also launched attacks on Powell, describing him as “the master is too late.”

Follow the May decision published Stronger than expected as not farm salaries April numbers, which show that the American labor market is still equal despite the uncertainty resulting from the Trump administration’s commercial policies.

Job numbers have led many economists to retract their expectations in the first reduction in the Federal Reserve rate until September as soon as possible.

There was no immediate change in price expectations after the Federal Reserve on Wednesday.

The US cabinet returns, which move background, have decreased to the lowest level of the day. The return has decreased for 10 years, which moves with growth expectations, by 0.03 percent to 4.28 percent. American stocks were trading almost a day.

Trump announced the sweeping tariffs on April 2, which, if enact, will provoke commercial barriers for us at its highest levels in more than a century. Most of them were stopped for 90 days a week.

While the gross domestic product was contracted for the first time in three years in the first quarter, the officials put this to the distortions that caused the customs tariff where American companies are looking to apply for fees by importing goods.

“It is a little confusing … but I think we understand what is going on and will not change the things for us,” said Powell.