Powell Cites ‘Uncertainty’ as Fed Declines to Cut Interest Rates
Chairman Jerome Powell says the Federal Reserve Board has declined to reduce its target lending rate for a third straight meeting, holding at 4.25% to 4.5% as the Trump administration’s evolving economic and trade policies make future conditions difficult to predict.
Powell made the announcement at a press conference Wednesday, where he touched on topics ranging from tariffs to the labor market.
“We are comfortable with our policy stance. We think right now the appropriate thing to do is to wait and see how things evolve. There’s so much uncertainty.”
The word “uncertainty” also appears in the official statement the board released after the press conference.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty about the economic outlook has increased further,” the statement reads, in part. “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.”
