US Fed Meeting: Jerome Powell Says No Hurry To Adjust Rates As Sustained Tariffs Seen Biting — As It Happened
The US Federal Reserve FOMC has decided to keep the interest rate unchanged at 4.25-4.5% range for the third time in a row. All 12 members of the panel voted in favour.
KEY HIGHLIGHTS
US Fed Rate Decision And Powell's Speech — As It Happened
The US Federal Reserve's FOMC decided to keep interest rate steady at 4.25-4.5% range for the third time in a row. The decision was unanimous.
The policy statement highlighted the uncertainity over the health of the US economy from the tariff wars sparked by President Donald Trump.
In his media address, Chairmen Jerome Powell said the risks of higher unemployment and inflation have risen, and the current policy stance leaves the Fed “well positioned” to address economic developments “in a timely way".
The Fed chair said the effect of tariff hikes on the US economy remains highly uncertain but if the announced increases were to be sustained, that would impact inflation, growth and employment.
The US Federal Reserve's current monetary policy is modestly, or moderately restrictive, Powell said.
Notably, the March Fed dot plot signaled two rate cuts in 2025. Next US Federal Reserve FOMC meeting in June.
That's it from our side! The live blog has ended.
Gold Price Dips; Bitcoin Up 2%
Gold prices fell after the US Federal Reserve announced a status quo in the benchmark lending rates. The bullion, which was already trading under pressure during the day, traded nearly 1.4% lower following the disclosure of Fed decision.
Spot gold was trading at $3,388 an ounce in the global market, down 1.32% at 2:30 pm (EST).
Bitcoin, however, gained as the world's largest traded cryptocurrency was trading 2.24% higher at 96,811.57 at the same time.
Jerome Powell Live: Meeting With President Trump
"I've never asked for a meeting with any president. Can't imagine myself asking for meeting with the president," Jerome Powell said.
Powell and Trump, who appointed him as Fed Chair during his first term, are yet to meet since the Republican leader's return to the White House in January.
Jerome Powell Live: Reaction To US-China Trade Talks
The US and China are reportedly talking trade in Switzerland.
When asked about a potential deal, Jerome Powell said, "We seem to be entering a new phase for trade, where negotiations are starting. That could change the picture materially or not. We’re mindful about not making conclusive judgements at a time when the facts are changing."
He said trade and fiscal policies are the mandate of the US government and won't comment more on the matter.
US Fed Meeting Live: Direction For June
The March Fed dot plot signaled two rate cuts in 2025. Next US Federal Reserve FOMC meeting in June.
