The Federal Reserve continues to stand pat, emphasizing rising risks of unemployment and inflation.

The Federal Reserve held interest rates steady for the third consecutive meeting and emphasized that they believe the risks of rising inflation and increasing unemployment are both growing. The FOMC committee stated, "The uncertainties about the economic outlook have further increased. The Committee is monitoring the risks that the dual mandate faces on both sides, and judges that the risks of high unemployment and high inflation have increased." Officials unanimously voted to keep interest rates in the range of 4.25%-4.5%. The Fed stated that they will continue to reduce the balance sheet at the pace announced in the March meeting. Trump's trade policies have sparked uncertainty throughout the economy. While tariffs are still being negotiated, economists widely expect that comprehensive tariffs will push up inflation and drag down economic growth. This will make the policymakers' two goals contradictory.