by WorldTribune Staff / 247 Real News June 18, 2025
The Federal Reserve on Wednesday kept its key borrowing rate unchanged. The rate has been between 4.25%-4.5% since December.
The Federal Open Market Committee said it expects to make two rate reductions “later this year.”
Federal Reserve Chairman Jerome Powell / Video ImageFederal Reserve Chairman Jerome Powell suggested there is time to wait for more clarity:
“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policies.”
In the background of the announcement were political considerations and the tariff polices of President Donald Trump that have been centrally focused on China and are opposed by some U.S. firms with major financial ties to China.
Powell discussed tariffs several times at his press conference on June 18, 2025, emphasizing that the increase in anticipated inflation reflected the Fed’s view that tariffs are inflationary.
“Increases in tariffs this year, are likely to push up prices and weigh on economic activity,” Powell said. “Everyone I know is forecasting a meaningful increase on prices from tariffs because someone has to pay for the tariffs.”
Earlier Wednesday, President Donald Trump slammed Powell and his colleagues for not easing the rate.
Trump said the fed rate should be at least 2 percentage points lower and derided Powell as “stupid” for not pushing the committee to cut.
Meanwhile, interest on the U.S. debt is on track to total $1.2 trillion this year and exceeds all other budget items except Social Security and Medicare.
U.S. stocks held on to gains in the wake of the announcement.
The committee said the economy grew at a “solid pace” in May with “low” unemployment and “somewhat elevated” inflation.
“Uncertainty about the economic outlook has diminished but remains elevated. The committee is attentive to the risks to both sides of its dual mandate,” the committee said.
Fed leaves interest rate unchanged, citing tariffs added by Editor Two on June 18, 2025
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