Fed Plans to Hold Rates Steady as Tariffs Threaten Higher Inflation. Yes, That Matters

The central bank is widely expected to keep its benchmark interest rate at a range of 4.25% to 4.5%. Wong Yu Liang/Getty Images Interest rates aren't likely to budge anytime soon. You can blame tariffs. At its May 6-7 meeting, the Fed is expected to leave rates steady for the third consecutive time. The US central bank meets eight times a year to assess the economy's health and set monetary policy through changes to the federal funds rate, the benchmark interest rate US banks use to lend or borrow money overnight. Fed Chair Jerome Powell remains steadfast in monitoring labor market conditions and inflation pressures before making any cuts. Despite pressure from the White House to lower borrowing rates, there's too much uncertainty over the impact of the Trump administration's economic agenda, specifically the trade war and government slashing. Economists are concerned that tariffs will unleash more inflationary pressures. In the meantime, US households are curbing spending amid fea ... Read full article.