Fed holds rates steady as it notes rising uncertainty and stagflation risk

[BumRushDaShow]

Last edited Wed May 7, 2025, 03:25 PM - Edit history (1)

Source: CNBC

Published Wed, May 7 2025 2:00 PM EDT Updated 12 Min Ago


WASHINGTON — The Federal Reserve on Wednesday held its key interest rate unchanged as it waits for the Trump administration’s trade policy to take shape and sees its impact on a sputtering economy.

In a move that carried little suspense given the wave of uncertainty sweeping the political and economic landscape, the Federal Open Market Committee held its benchmark overnight borrowing rate in a range between 4.25%-4.5%, where it has been since December.

The post-meeting statement noted the volatility and how that is factoring into policy decisions. “Uncertainty about the economic outlook has increased further,” the statement said. “The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”

While the statement did not specifically address the tariffs, Chair Jerome Powell addressed the issue at his post-meeting news conference.



Read more: https://www.cnbc.com/2025/05/07/fed-rate-decision-may-2025.html

---

Article updated.

Original article -

Published Wed, May 7 2025 2:00 PM EDT Updated 1 Min Ago


The Federal Reserve on Wednesday held its key interest rate unchanged as it awaits fluctuations in trade policy and the direction of a sputtering economy.

In a move that carried little suspense given the wave of uncertainty sweeping the political and economic landscape, the Federal Open Market Committee held its benchmark overnight borrowing rate in a range between 4.25%-4.5%, where it has been since December.

The post-meeting statement noted the volatility and how that is factoring into policy decisions. “Uncertainty about the economic outlook has increased further,” the statement said. “The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.“

However, the statement did not specifically address the tariffs, though Chair Jerome Powell is sure to be asked about them in his post-meeting news conference.

[Chasstev365]

1. It's SOOOOO UNFAIR!

Que the threats from the toddler in chief.

[IronLionZion]

2. Trump will provide lots more uncertainty, volatility, and stagflation real soon

to force the Fed to lower rates.

[LetMyPeopleVote]

3. **But the Fed adds a warning about stagflation:**

I remember stagflation during the 1970s.

Link to tweet

Just in: The Federal Reserve keeps the benchmark interest rate unchanged at 4.25 to 4.5%.

**But the Fed adds a warning about stagflation *
"the risks of higher unemployment and higher inflation have risen."

[littlemissmartypants]

4. I do. ...

Last edited Wed May 7, 2025, 08:10 PM - Edit history (1)

I was a, literally starving, poor college student, working and going to classes but couldn't afford to buy meat. I used to cry over the meat section of the grocery store.

I lived on potatoes. Even now I can now prepare them many different delicious ways.

❤️

[progree]

5. "My gut tells me that uncertainty about the path of the economy is extremely elevated and

"that the downside risks have increased," he [Powell] said.

https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-rise-as-fed-holds-rates-steady-powell-sticks-to-wait-and-see-200523723.html

===========================

"extremely elevated". Hmm. But the stock market (S&P 500) closed up 0.4% for the day, the Dow up 0.7% (285 points), so hey, no big deal I guess.

=========================

Oops, I meant to reply to the OP. But there's also rice, pasta, ramen, and beans and bread in addition to potatoes for cheap ways to suppress hunger.