Fed expected to keep interest rates steady due to high inflation and uncertainty over tariffs

From Yahoo Finance: 2025-05-13 10:17:00

The Federal Reserve is expected to keep interest rates steady after a recent inflation reading. The Consumer Price Index for April showed prices remaining high, with core CPI inflation at 2.8% year-over-year and 0.2% monthly increase. Analysts believe tariffs will impact inflation in the coming months, despite a 90-day trade truce between the US and China. Fed officials warn of higher inflation, unemployment, and slower economic growth. Chairman Jerome Powell will wait for more clarity on tariffs before adjusting monetary policy. Bank of America analysts predict inflation at 3.5% this year due to tariff-driven price hikes.



Read more at Yahoo Finance: Fed still likely to play ‘wait and see’ on rates amid tariff inflation uncertainty