INSUBCONTINENT EXCLUSIVE:
It paused rates for a third straight meeting.The committee noted that economic uncertainty has risen and that risks of higher inflation and
unemployment have increased.Policymakers warned about stagflation risk as tariffs could slow growth and push up prices
They highlighted that tariffs threaten to drive up consumer prices while damping growth.The Fed projects two quarter-point rate cuts this
year, bringing its midpoint near 3.75 percent to 4.00 percent by December
Markets assign near-zero odds to a May cut and around 75 percent odds to a July reduction.Fed Flags Price, Job Risks and Keeps Interest Rate
(Photo Internet reproduction)The Fed holds roughly four percentage points higher rates than early 2024 levels
target, driven partly by trade-related price shocks.Fed Flags Price, Job Risks and Keeps Interest Rate UnchangedDurable goods orders jumped
more than 10 percent in the first quarter, signalling business resilience
President Trump has publicly urged lower rates, but policymakers resisted political pressure.The statement pledged to adjust policy as
needed and to monitor economic data closely
Fed officials will continue reducing Treasuries and mortgage-backed securities holdings at the current pace.Fed monitoring of credit
conditions will guide future policy moves
Businesses face higher borrowing costs, with credit card rates exceeding 21 percent and mortgage rates near 6.9 percent
portfolio risks amid rising trade tensions
