The US Federal Reserve in its latest policy meeting on Wednesday kept interest rates unchanged, maintained the benchmark federal funds rate in the range of 4.25% to 4.50%. Amid growing uncertainty driven largely by President Donald Trump's tariff policies and geopolitical tensions, Fed Chair Jerome Powell emphasised a “wait-and-see” stance, underscoring the rising risks to both inflation and unemployment.The Federal Open Market Committee acknowledged a shift in the economic landscape since its previous meeting in March, noting increased ambiguity surrounding the outlook. While the Fed still sees ongoing job gains and a “solid pace” of overall economic growth, it warned that the balance of risks has tilted—suggesting a possible scenario of stagflation, marked by sluggish growth coupled with elevated inflation.
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