The Federal Open Market Committee (FOMC) has decided to keep interest rates unchanged, indicating a stabilized unemployment rate and a solid labor market. However, members expressed concerns about potential increases in unemployment and inflation in the coming months. Fed Chair Jerome Powell warned that sustained tariffs could lead to rising inflation and economic slowdown, implying that significant layoffs could trigger an interest rate cut sooner rather than later. Despite recent fluctuations in the stock market influenced by tariff announcements, major indexes have rebounded, alleviating fears around the economic impact of such policies. Analysts remain cautious about the trajectory of economic policy and market reactions as ongoing developments unfold.

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