Stable inflation data allow Fed to maintain current rates — Bloomberg

As Bloomberg reports, the Federal Reserve (Fed) is optimistic about the lack of a significant increase in official inflation data. The monetary authority intends to keep interest rates unchanged until the impact of trade policies on the US economy becomes clearer.

According to a Bloomberg survey released on Friday, experts expect April's personal consumption expenditures price index to rise by 0.1%. So far, the tariffs' impact remains muted in official statistics. At the same time, economists anticipate seeing negative effects in the coming months, the agency emphasizes. Moreover, the strong labor market in the United States allows the Fed to keep borrowing costs unchanged.

Meanwhile, according to Bloomberg forecasts, economic growth in the US will slow down this year. Import tariffs are driving up costs and reducing consumer confidence. This is encouraging businesses to assess their prospects more cautiously.