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US-China Tensions Rise, Fed Signals Rate Pause
Ongoing tensions between the United States and China have prompted the Federal Reserve to take a cautious stance. The US central bank has indicated it will likely hold interest rates steady in this month's FOMC meeting.
Fed Chair Jerome Powell cited global risksâincluding trade disputes and new tech sanctions between the two superpowersâas key considerations. "We prefer to wait and observe further developments," he stated.
The benchmark interest rate currently stands at 5.25%â5.50%. While inflation has shown signs of easing, it remains above the Fedâs 2% target. Heightened geopolitical uncertainty has led to cautious market movements, with stocks relatively stable and bond yields slightly down