US Fed Still Sees Two Rate Cuts, But Powell Cautious On Trump Trade Policy Impact — As It Happened
US Fed Meeting: The bottomline is that Powell and team are still looking at 'uncertainty' amid the tariff risks. US inflation is seen rising and growth slowing.
US Fed Meeting: The Main Highlights
The FOMC decided to keep rates unchanged at the 4.25-4.5% range for the fourth time in a unanimous decision.
It has raised the inflation projection to 3% in 2025, higher than the 2% target. At the same time, the US GDP growth forecast has been lowered to 1.4%.
The 'dot plot' is unchanged from March. Fed still sees two 25 basis points rate cuts in 2025.
Jerome Powell said uncertainty remains high amid tariff tensions and Middle East crisis.
He said the effects of Trump tariffs will depend, among other things, on their ultimate level. "Increases in tariffs this year are likely to push up prices and weigh on economic activity.”
(With this, we end the live blog. Thanks for joining.)
Fed Meeting Live: Powell Press Conference Ends
Fed Meeting Live: Powell On Oil Prices
On the Middle East crisis, Powell says oil prices have historically moved up briefly after conflict and then come done. He, however, noted the 'oil shock' of the 1970s when steep prices had a severe impact.
"The US economy is far less dependent on foreign oil," he said, while saying inflation won't take a sudden mark.
Jerome Powell Live: Fed Chair Says Tariff Costs To Pressure US Consumers
Some of the tariff costs will be borne by US consumers and businesses, Powell says as the Fed sees higher inflation coming. This is in contrast to Trump's repeated assertion that tariffs will hit other countries.
Big Swing In Wall Street: Stocks Fall
US benchmark indices have swung to losses. The S&P 500, Dow Jones and Nasdaq are now trading lower.
The Dollar has almost erased its losses. Euro and Pound has fallen.
