US Fed keeps interest rate unchanged despite potential stagflation

The United States Federal Reserve opted for a dovish stance on Wednesday, keeping the interest rate unchanged despite seeing slower growth and slightly higher inflation in months to come. However, the Fed has signalled that policymakers foresee cutting borrowing costs by half a percentage point by the end of the year.

Dollar Pares Gains vs Euro

The US dollar trimmed its gains against the euro after the decision.  In light of the Trump administration’s tariff measures, Fed officials revised their inflation outlook upward. They now expect their…