The U.S. Federal Reserve is expected to maintain its key interest rate between 4.25% and 4.50% following today policy meeting, as it assesses the longer-term inflation impact of recent tariffs.
Despite pressure from President Donald Trump to slash rates, analysts say the Fed is likely to stay cautious, especially given ongoing global trade tensions and uncertainty in the Middle East.
Economists noted that while May’s consumer price index rose slightly to 2.4% year-on-year, tariff effects on prices have yet to fully materialize.
Fed Chair Jerome Powell has defended the central bank’s independence, reiterating that rate decisions will remain guided by data, not politics.