Fed sees rising risks to economy as it leaves rates unchanged

The U.S. economic outlook has become clouded as policymakers grapple with uncertain impacts from President Trump's tariffs, while the Fed maintains steady interest rates amid growing concerns about inflation and unemployment risks. The Federal Reserve kept rates unchanged but emphasized heightened risks of higher inflation and unemployment, complicating the assessment of an already volatile economy under Trump's policies. Fed Chair Jerome Powell underscored that the economic outlook is uncertain due to unsettled factors tied to Trump's administration, including potential legal and political developments, making it unclear what monetary policy response would be most appropriate.