Despite export volatility, economic activity is still expanding “at a solid pace.”
The Federal Reserve took a stand-by approach for central bank officials and did not change interest rates in the third consecutive meeting to make it clearer from President Donald Trump’s tariff plans.
Financial officials completed a two-day policy meeting on May 7th and voted to maintain a benchmark federal funding rate to impact economic activity, ranging from 4.25% to 4.5%.
Investors were widely hoping for policy decisions this month.
In a statement after the meeting, the Fed emphasized that the US economy remains in good condition.
“While net export fluctuations have affected the data, recent indicators suggest that economic activity continues to expand at a robust pace,” the Federal Open Market Committee (FOMC) said in a statement. “Unemployment has been stable at low levels over the past few months, and labor market conditions remain strong. Inflation remains somewhat rising.”
However, the pricing committee shows that the risk of high unemployment is increasing.
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