At the same time, the Fed forecast higher inflation and slower growth this year as President Donald Trump's tariff policies take effect and geopolitical uncertainty looms.
According to a VNA correspondent in Washington, the US central bank kept its benchmark lending rate unchanged in the range of 4.25 - 4.50% at the end of a two-day meeting of the Federal Open Market Committee (FOMC) - the Fed's policy-making body, with officials expecting two rate cuts this year, similar to previous forecasts.
Headquarters of the US Federal Reserve in Washington DC. (Photo: THX/TTXVN)
In a statement released after the meeting, the Fed said "uncertainties about the economic outlook have declined but remain high." The agency cut its expectations for economic growth this year and raised its forecasts for inflation and unemployment in updated projections.
Fed officials highlighted the overall health of the US economy, with inflation falling in recent months along with a steadily low unemployment rate.
The US unemployment rate has remained at 4.2% for the last three censuses, with about 7 million people unemployed in a US workforce of about 170 million. Inflation picked up slightly, with the consumer price index (CPI) rising to 2.4% in May, up from 2.3% in April.
The personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, eased to a 2.1% increase in April - just below the Fed's 2% target.
The Fed's rate decision was in line with analysts' forecasts. Observers largely expect policymakers to take a cautious approach this year as they monitor the impact of President Trump's tariff policies on the world's largest economy.
Although economists have warned that the across-the-board tariffs, which have raised overall U.S. tariffs to their highest level in nearly 100 years, could fuel inflation and weigh on growth, so far they have not caused widespread price spikes.
The Fed's latest move is likely to anger the 47th White House boss, who has repeatedly pressured the central bank to lower interest rates.
Source: https://vtcnews.vn/fed-tiep-tuc-giu-nguyen-lai-suat-co-ban-ar949690.html
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