Fed sees rising risks as it leaves rates unchanged

Hot seat: Screens in the New York Stock Exchange show Powell speaking to the press. The Fed chair says US businesses and households are concerned about the economy. — AP

WASHINGTON: The US Federal Reserve (Fed) is holding interest rates steady but says the risks of higher inflation and unemployment have risen, further clouding the US economic outlook as its policymakers grapple with the impact of President Donald Trump’s tariffs.

Fed chair Jerome Powell said on Wednesday, at this point, it wasn’t clear if the economy would continue its steady pace of growth, or wilt under mounting uncertainty and a possible coming spike in inflation.