Fed keeps rate steady amid Global Uncertainty, Tariff Pause: A right step in the right direction: PHDCCI

The Federal Open Market Committee’s decision to maintain the federal funds rate at 4.25%-4.5% is appreciable, given the persisting geopolitical volatilities, trade uncertainties, and the US administration’s decision on a 90-day tariff pause, said Mr Hemant Jain, President, PHDCCI, in a press statement issued today.

Hemant Jain

The US is witnessing an expansion of economic activity, with the unemployment rate at low levels. Uncertainty about the economic outlook has diminished but remains elevated, said Mr Jain.

The Federal Reserve’s current stance on interest rates is commendable in light of the heightened uncertainty regarding the economic outlook; it strongly supports maximum employment and aims to return inflation to its 2% target, he said.

Looking ahead, we anticipate the Fed will continue to assess the impact of new information on the economic outlook and be ready to adjust monetary policy as necessary if risks arise, Mr. Jain said.

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