
Fed Holds Rates Steady Amid Trade War and Middle East Tensions
The Fed held its key interest rate steady on June 18, balancing trade-war inflation risks and global uncertainty tied to the Middle East conflict.
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The Fed held its key interest rate steady on June 18, balancing trade-war inflation risks and global uncertainty tied to the Middle East conflict.
US inflation slightly eased in January with the PCE Price Index at 2.5%, but remains above the Fed’s 2% target. Consumers expect 3.5% inflation in the next decade.
Federal Reserve Chair Jerome Powell addresses the Jackson Hole symposium, hinting at a potential interest rate cut in September as inflation approaches the Fed’s target.
The Fed’s decision to keep interest rates high continues to strain the global economy, weakening currencies and increasing debt burdens in emerging markets.