In particular, trade uncertainty arising from escalating tensions between the US and China was the chief concern. Both countries have yet to reach a deal, which was supposed to be inked earlier this year. “We do not know how or when these issues will be resolved,” said Powell.
SINGAPORE (June 24): As expected, the US Federal Reserve kept interest rates unchanged at between 2.25% and 2.5%, following the conclusion of the Federal Open Market Committee (FOMC) meeting on June 18 and 19. This came amid growing economic uncertainty and risks despite a largely robust US economy so far this year.
Fed chairman Jerome Powell recalled that the US central bank’s policy stance had been “broadly appropriate” since the beginning of the year, and that it had been “patient” to make any changes. However, “in the light of increased uncertainties and muted inflation pressures, we now emphasise that the committee will closely monitor the implications of incoming information for the economic outlook and will act [appropriately]”, he said at a press briefing following the FOMC meeting.
