Central Bank Raises Interest Rates Again

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Central Bank Raises Interest Rates Again

In a move reflecting ongoing concerns about inflation and economic stability, several central banks have recently adjusted their benchmark interest rates. These decisions underscore the delicate balance policymakers must maintain between curbing inflation and supporting economic growth.

Federal Reserve Holds Rates Steady Amid Uncertainty

As of May 2025, the U.S. Federal Reserve has maintained its federal funds rate at a target range of 4.25% to 4.50%, marking the third consecutive meeting without a rate change. This decision reflects the Fed's cautious approach amid rising economic uncertainties, particularly those stemming from recent trade policies and tariffs. Fed Chairman Jerome Powell highlighted the risks of higher unemployment and inflation resulting from tariffs but cited resilient economic data as justification to hold rates steady for now