Impact of Trump's policies on US economy 'highly uncertain' as Fed hold rates steady

Inflation still above Fed's target

US Federal Reserve chair Jerome Powell has warned that the effects of President Donald Trump’s policies – including on trade and immigration – on the economy remain “highly uncertain” as America’s central bank decided to hold interest rates unchanged at 4.25%–4.50%.

In his speech on Wednesday (8 May), Powell said the tariff rises announced by the White House have so far  been "significantly larger than anticipated", with inflation still running "somewhat above our 2% longer-run objective". Uncertainty from Trump's trade war pulls a break on May's Fed rate cut as US growth prospects falter He added that despite elevated levels of uncertainty, "the economy is still in a solid position". "The unemployment rate remains low, and the labour market is at or near maximum employment," Powell said. "In support of our goals, today the Federal Open Mar...