Takeaways from the Fed’s decision to keep rates on hold as officials watch Trump’s tariffs and Israel-Iran conflict
CNN
The Federal Reserve held interest rates steady again Wednesday as officials continue to wait for the fallout of President Donald Trump’s sweeping policy changes and tensions in the Middle East.
The Federal Reserve held interest rates steady again Wednesday as officials continue to wait for the fallout of President Donald Trump’s sweeping policy changes and tensions in the Middle East. The central bank left its benchmark lending rate unchanged at a range of 4.25% to 4.5%, where it has been since January. Economists widely expect Trump’s erratic trade war to push up prices and eventually cause unemployment to climb. So far, Trump’s tariffs have resulted in a surge of imports into the US, which has taken a toll on economic growth. However, inflation has been tame and the labor market remains in decent shape. Still, Fed officials don’t expect that to last: New economic projections show that officials expect unemployment to rise this year more than estimated in March — and for prices to pick up more than they previously thought. Fed Chair Jerome Powell said in his post-meeting news conference that he expects Trump’s tariffs to eventually translate into higher inflation, but said the extent remains unclear. That will need to become apparent in order for the Fed to lower borrowing costs again, Powell said. “We have to learn more about tariffs. I don’t know what the right way for us to react will be,” he told reporters. “I think it’s hard to know with any confidence how we should react until we see the size of the effects.” US stocks took a dive after Powell said it’s difficult for the Fed to forecast with any confidence what the precise impact of tariffs will be on prices.
The much-touted new tax breaks for tips, overtime, seniors and car loan interest have a lot of income tax filers expecting a big bump in their refunds this year – or a big cut in their tax bill.
Looking out his shop window, across the street, just to the right, Paloma Clothing co-owner Mike Roach sees one of Portland, Oregon’s, most expensive gas stations.
Oil and liquefied natural gas tankers moving through the Strait of Hormuz carry around 20% of the world’s supply. But for countries on the Persian Gulf, the waterway is more than just an energy route – it’s a lifeline for more than 100 million people.
A California jury has largely sided with Twitter shareholders who accused billionaire Elon Musk of defrauding them by intentionally driving down the social media company’s stock ahead of his $44 billion acquisition in 2022.
The war with Iran is disrupting global oil flows, damaging energy infrastructure and raising fears of prolonged conflict. But gold, usually considered a safe haven during periods of economic uncertainty, has slumped.
US stocks and bonds fell, oil prices rose and gold had its worst week in four decades as the Iran war continues to ripple through financial markets.
The White House on Friday released its long-awaited national artificial intelligence legislative framework, a move to prevent states from enacting their own laws and enforce the Trump administration’s light-touch approach to AI regulation.
“Today is a difficult day,” CBS executives wrote to staff, explaining the cuts as a tough but necessary reallocation of newsroom resources.
President Donald Trump has repeatedly promised that Americans will get larger tax refunds this year thanks to his “big, beautiful bill.”
President Donald Trump has repeatedly promised that Americans will get larger tax refunds this year thanks to his “big, beautiful bill.”
Oil prices edged lower on Friday after a tumultuous day that saw the international benchmark surge above $119 a barrel as the Middle East conflict deepened energy supply fears.
The war in Iran has delivered what economists call a “black swan” event — an unforeseen shock so destructive, no one is immune to it.
The war in Iran is driving up the cost of buying a home in America.