Overview

• The Federal Reserve kept its benchmark interest rate at 4.25%–4.5%, maintaining a cautious, data-driven approach.
• Chair Jerome Powell highlighted risks of higher inflation, slower growth, and rising unemployment if proposed tariffs are sustained.
• Powell emphasized the economy's current strength in employment and spending but noted record-low consumer confidence due to tariff concerns.
• President Trump reiterated his push for rate cuts, labeling Powell a 'total stiff,' though Powell affirmed that Fed decisions remain unaffected by political pressure.
• The White House is set to announce details of a trade deal with the UK, which could mark the first major agreement following April's tariff rollout.