Fed Rejects Liquidity Injection, Holds Rates Steady Amidst Trump’s Tariffs

The US Federal Reserve has ruled out injecting more liquidity into the financial system, even if job market conditions worsen. This decision stems from a heightened inflation risk posed by President Donald Trump’s new tariffs on imports and a commitment to maintaining current measures fighting against inflation since 2022. Fed officials are holding off on rate cuts until there is substantial evidence of a significant increase in unemployment, signaling that they intend to prioritize controlling prices over immediate market adjustments.