Economic activity is still expanding ‘at a solid pace’ despite volatility in exports.
The Federal Reserve left interest rates unchanged for the third consecutive meeting as central bank officials adopt a wait-and-see approach and seek more clarity from President Donald Trump’s tariff plans.
Monetary officials completed their two-day policy meeting on May 7, voting to keep the benchmark federal funds rate—a tool for influencing economic activity—at a range of 4.25 percent to 4.5 percent.
Investors widely expected this month’s policy decision.
In a post-meeting statement, the Fed highlighted that the U.S. economy remains in good condition.
“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the Federal Open Market Committee (FOMC) said in a statement. “The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.”
However, the rate-setting committee signaled that higher unemployment and inflation risks have risen.
By Andrew Moran
