The Latest Breaking News from Inflation

A data-dependent approach might leave the central bank playing catch-up.

Here the PA news agency looks at what the decision means and what the Bank expects to happen to the economy.

The forecast said low growth would place the Bank of England in difficult position ahead of next interest rate decision

The Federal Reserve kept its key interest rate unchanged on Wednesday, brushing off President Donald Trump’s demands to lower borrowing costs, and said that the risks of both higher unemployment and higher inflation have risen, an unusual combination that puts the central bank in a difficult spot.

The Fed chair noted that Trump's upcoming tariffs could lead to inflation and increased unemployment

Fed Chair Jerome Powell said the central bank hasn’t faced such a scenario in a “long time.”

The S&P 500 Index ($SPX ) (SPY ) Wednesday closed up +0.43%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up +0.70%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up +0.39%. June E-mini S&P futures (ESM25 ) are up +0.36%, and June E-mini Nasdaq futures...

The Federal Open Market Committee said it "judges that the risks of higher unemployment and higher inflation have risen."

The central bank will hold steady amid economic uncertainty driven by tariffs.