In the United States, on June 18, 2025, the Federal Reserve decided to hold its benchmark interest rates steady at 4.25% to 4.50%. This marks the fourth consecutive meeting without a rate change, reflecting concerns over economic volatility.
The decision comes amid revised economic projections indicating weaker growth and heightened inflation, potentially leading to stagflation. The FOMC reached a unanimous decision, influenced by factors such as President Trump's "Liberation Day" tariffs.
Despite political pressure, Fed Chair Jerome Powell asserted that stable rates are appropriate. Last week, the Consumer Price Index rose an unexpectedly small 0.1%, with the annual rate at 2.4%. Brent crude oil rose 4% on Tuesday to over $75 per barrel.