US Fed leaves rate unchanged, says inflation risk higher

The Federal Reserve held interest rates steady in the 4.25-4.5% range on Wednesday but said the risks of higher inflation and unemployment had risen, further clouding the economic outlook as the US central bank grapples with the impact of Trump administration tariff policies. The economy overall has “continued to expand at a solid pace,” the Fed said in a policy statement, attributing a drop in first quarter output to record imports as businesses and households rushed to front-run new import taxes(This is a Reuters story)