US Federal Reserve kept its key policy rate in the range of 4.25-4.5% for the third consecutive time

The US Federal Reserve System (FRS) has kept the federal funds rate in the range of 4.25-4.5% per annum. This is stated in the report of the Federal Open Market Committee (FOMC).

As noted, although fluctuations in net exports have affected the data, recent indicators suggest that economic activity continues to grow at a high rate. The unemployment rate has stabilized at low levels in recent months, and labor market conditions remain stable. Inflation is slightly elevated.

The FOMC is committed to achieving maximum employment and inflation of 2% in the long run.

“Uncertainty about the economic outlook has increased further. The Committee is closely monitoring the risks to both sides of its dual mandate and believes that the risks to upside unemployment and inflation have increased,” the statement said.

During a press conference after the statement was published, Fed Chairman Jerome Powell said that the tariffs had weakened consumer and business sentiment, but had not yet caused significant damage to the economy. At the moment, he said, there is too much uncertainty to say how the regulator should respond to the duties.

In April this year, the European Central Bank cut three key interest rates by 25 basis points. The regulator noted that the eurozone economy is building up some resilience to global shocks, but growth prospects have deteriorated due to increased trade tensions.