The United States Federal Reserve said on Friday that financial stability remained "resilient amid heightened uncertainty and withstood considerable volatility."
In the semi-annual report on monetary policy, the Fed's board pointed out that inflation is still "somewhat elevated" and that the labor market is in "solid shape," with a low unemployment rate. Gross domestic product (GDP) saw a pause in the first trimester, and household and business sentiment declined throughout the first half of the year, affected by growing concerns about the effect of tariffs on inflation, the board reported.
Fed also remarked that there are certain signs that higher tariffs on US imports are affecting prices of consumer goods, but underlined that it is still too early for assessments of what impact levies could have on the economy. Board stated that tariffs are "yet to appear in data," and that the Fed's current monetary policy is "well-positioned" for upcoming developments.
