The Federal Reserve maintains constant rates as it warns the increase in economic risks

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The Federal Reserve has maintained the interest rates of the United States awaiting the third consecutive meeting, as officials showed the growing concerns that President Donald Trump’s rates will cause a new inflation and weaken the job market.

“Uncertainty about economic prospects has increased even more,” said Policy Making Federal Federal Market Committee on Wednesday, after voting unanimously to maintain the federal funds’ and 4.5 percent goal target. The Committee added that since the last meeting in March, “the highest unemployment risks and a higher inflation have increased.”

FED officials have not reduced loan costs since December and said that they will be paused as they evaluate the effects of Trump’s rates to the largest economy in the world.

Recent reports showing demand for the world’s largest economy remained widely robust earlier this year. But the polls have indicated that companies and consumers are deeply concerned about Trump’s rates will affect their finances.

The corporate results also showed that many executives have trouble predicting their sales and benefits due to commercial uncertainty.

At a press conference after Wednesday’s announcement, Fed President Jay Powell said that taxes could put the Central Bank in a position in which both parts of his double term to foster maximum employment and maintain inflation at 2 %.

The FED Personal Personal Consumer Price Price Index increased at an annual rate of 2.6 percent in March, while the employment rate remained 4.2 percent in April.

“The Fed has gone from engineering from a gentle landing to prevent the economy from being shown, even when Trump tries to run the steering wheel,” said Eswar Prasad, a professor at the University of Cornell.

Guy Lebas, a fixed income strategist at Janney Montgomery Scott, added: “I do not remember a time when the Fed has updated both the risks of growth and inflation.

Powell also reiterated its recent states that the Central Bank had no “rush” to change politics, as it evaluates the effects of the rates. He said that the “correct thing to do is to expect more clarity”.

The FED has maintained its patient approach despite repeated calls from United States President to reduce loan costs. Trump has also launched attacks on Powell, labeling it as “Mr. Too Late”.

May decision followed the publication of stronger than expected non -agricultural payrolls April figures, showing that the United States labor market is on a solid foot despite uncertainty triggered by Trump Administration’s commercial policies.

Jobs figures led many economists to promote their expectations of the first Feed Cut the rate until September as soon as possible.

There was no immediate change in rate expectations after Wednesday Fed decision.

United States Treasury Renings, which move at the price, fell to the lowest levels of the day. The ten -year performance, which moves with growth expectations, was reduced by 0.03 percentage points to 4.28 percent. United States shares sought about a day.

Trump announced the sweeping rates on April 2, which, if promulgated, would increase the commercial barriers of their highest levels over more than a century. Most stopped for 90 days a week after.

While GDP was first hired in three years in the first quarter, officials left this to the distortions triggered by the rates, as North -American companies seek to move forward in importance of goods.

“Although changes in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid rate,” said the FOMC.