PREVIEW

Tariff Turmoil Leaves Fed in a Bind Over Interest Rates. The US Federal Reserve has expressed concerns over the economic uncertainty caused by President Trump's tariffs, leaving them unsure about future interest rate decisions. On Wednesday, the Fed decided to leave interest rates unchanged, despite Trump's repeated calls for rate cuts to stimulate the economy. Chairman Jerome Powell said that the impact of the tariffs makes it unclear how to proceed. He warned that tariffs could lead to rising inflation, slower growth, and higher unemployment. Typically, the Fed adjusts rates based on economic health, but the tariffs complicate this, raising the risks of both a slowdown and higher prices. This decision comes after Trump imposed steep tariffs on imports, especially from China, further straining global trade. Meanwhile, European central banks have already responded to trade tensions with rate cuts, and the UK is expected to follow suit.
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