US Federal Reserve holds rates steady, warns of higher unemployment

The US Federal Reserve has kept interest rates unchanged, brushing off President Donald Trump’s demands to lower borrowing costs, and said that the risks of higher unemployment and higher inflation have risen.

The Central Bank kept its benchmark rate at 4.25 percent to 4.5 percent, where it has been since December, after cutting it three times in a row at the end of last year. Its vote to hold rates steady was unanimous.

In a statement, the Fed said that “uncertainty about the economic outlook has increased further”, as it justified keeping rates consistent despite pressure from the White House.

Many economists and Wall Street investors still expect the Fed will reduce rates two or three times this year, but the sweeping tariffs imposed by Trump&nbsp, have injected a tremendous&nbsp, amount of uncertainty into the US economy&nbsp, and the Fed’s policies.

It is unusual for the Fed to say that the risk of both prices and unemployment have increased. But economists say that is the threat created by Trump’s sweeping tariffs. The import taxes could both lift inflation by making imported parts and finished goods more expensive, while also raising unemployment by causing companies to cut jobs as their costs rise.

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.

The Fed said that it was also “strongly committed to supporting maximum employment and returning inflation to its 2 percent objective”.

The Fed said that one of the driving factors behind its decision is the state of the labour market as well as “inflation pressures and inflation expectations, and financial and international developments”.

The US Labor Department in the jobs report published last week showed 177, 000 jobs were added to the US economy consistent with growth levels over the last 12 months. The report, however, was on employment before “liberation day”, when Trump announced his sweeping tariff policy, which has since driven global economic uncertainty. The ADP jobs report, which is a more immediate metric, showed job growth at 62, 000.

Fed Chair Jerome Powell said in a news conference after the interest rate decision that leaving rates unchanged keeps the central bank in a good position to respond.

“For the time being, we are well-positioned to wait for greater clarity before considering any adjustments to our policy stance”, Powell told reporters. “It’s still a healthy economy, albeit one that is shrouded in some very downbeat sentiment on the part of people and businesses”, he added.

“The Fed statement was a statement of the obvious. They gave roughly equal airtime to the threats to growth and inflation, so that tells us we need to wait and see how the data shake out between now and the June meeting before deciding whether they’re going to prioritise keeping inflation expectations contained or to address any hit to growth”, said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.

Ford to raise prices on three cars produced in Mexico: Report

Ford Motor Company has raised prices for three of its vehicles produced in Mexico, becoming one of the first major carmakers to adjust sticker prices following US President Donald Trump’s tariffs.

The new prices took effect on vehicles produced on May 2 or later, according to the news agency Reuters, which first reported the story on Wednesday.

Prices on the Mustang Mach-E electric SUV, Maverick pick-up — one of its most affordable and popular vehicles— and Bronco Sport will increase by as much as $2, 000 on some models, according to a notice sent to dealers, which was reviewed by Reuters. &nbsp, A Ford spokesperson said the cars with the raised price tag would arrive at dealer lots in late June.

Ford said the trade war would add about $2.5bn in costs for 2025, but it expects to reduce that exposure by about $1bn. General Motors said last week that tariffs were projected to cost it between $4bn and $5bn following the imposition of hefty levies on foreign imports of automobiles, but it expected to offset that by at least 30 percent.

Trump’s tariffs have unleashed weeks of uncertainty across the auto sector, as major carmakers in the United States and Europe have pulled forecasts, shifted production and caused companies to idle plants.

Following weeks of pushback from the auto industry, Trump softened his tariffs on foreign auto parts imports to give carmakers credits for what is produced in the US and to avoid double-tariffs on raw materials used in production. However, the White House has not rescinded a 25-percent tariff on the 8 million vehicles the US imports annually.

Ford is in a better position to weather tariffs than some of its competitors because of its strong US manufacturing base. The Dearborn, Michigan, automaker assembles 79 percent of its US-sold vehicles domestically, compared with GM’s 53 percent, according to an analyst note from Barclays.

Pricing pressure

Ford and GM also face significant levies on imports from China and South Korea, respectively. GM estimated that the costs on its Korean imports totalled about $2bn, while Ford declined to specify the expenses around importing vehicles from China.

Automakers that rely on exports to the US are facing increased pricing pressure. A dozen major carmakers, including Toyota and GM, import at least 40 percent of the vehicles they sell in the US, with some, such as Volkswagen and Hyundai Motor, importing more than 60 percent, according to 2024 data from S&amp, P Global Mobility.

Before Ford’s move, most carmakers had not taken the step of boosting prices, but had warned that it was on the way. Porsche said it would have to boost its selling cost if tariffs remained in place, while US Volkswagen’s Audi brand also suggested potential price increases, without providing any details.

Chancellor Friedrich Merz calls for renewed Franco-German cooperation

German Chancellor Friedrich Merz has called for a renewed partnership with France to help Europe confront its “enormous” security and economic challenges.

At a joint news conference with French President Emmanuel Macron in Paris on Wednesday, Merz outlined a joint vision for deeper European integration, calling for a “new push for Europe” grounded in closer Franco-German cooperation.

“We will only be able to meet these challenges if France and Germany stand even more closely together than in the past”, Merz said. “That is why Emmanuel Macron and I have agreed on a new Franco-German push for Europe”.

Among the initiatives discussed was the strengthening of the Franco-German Defence and Security Council, Merz said.

“We want to better coordinate our support for Ukraine within this framework, align our national defence planning and procurement projects even more closely, and also find new answers to strategic questions of security and defence policy”, Merz added.

The meeting comes at a time of mounting concern across Europe about the reliability of US security guarantees amid Russia’s war in Ukraine.

In a joint op-ed published in Le Figaro, Merz and Macron affirmed their shared commitment to “contribute to a just and lasting peace]in Ukraine], with the support of the United States on security, and strong security guarantees”.

Macron said the two countries would fast-track new defence capabilities.

The visit to Paris follows a rocky start to Merz’s chancellorship after he needed an unprecedented two rounds of voting in the Bundestag to be elected Chancellor, suggesting underlying divisions within the new governing coalition between his centre-right CDU/CSU alliance and the centre-left Social Democrats (SPD).

But in a potential shift towards a more unified German foreign policy, Merz now presides over a government in which both the chancellery and foreign ministry are held by the same party for the first time in years.

He has also pledged to establish a national security council within the chancellery, aimed at improving coordination across foreign, development, and defence policy.

Postecoglou hits back at Wenger over Champions League spot row

Reuters

In response to Arsene Wenger’s suggestion that Europa League winners should not be able to reach the Champions League, Ange Postecoglou says, “Spurs does crazy things to people.”

Wenger, a former Arsenal manager, is now Fifa’s director of global football development. He has questioned why the Europa League winners made it to the Champions League next year.

Tottenham’s lead to 3-1 going into Thursday’s Europa League second leg at Bodo/Glimt’s Aspmyra Stadion.

However, they are 16th in the Premier League table, while Manchester United, who lead Athletic Club by 3-0 in the other last-four tie, are just one point ahead. On May 21 in Bilbao, the winners will square off against one another.

Postecoglou doesn’t understand Wenger’s argument, though the pair won’t qualify for Europe through the league.

You put that club in any sentence or issue, and they always try their hardest to minimize it as much as they can.

“They adore it, Spurs mate,” he said.

It follows competition guidelines. Why is it still a problem and why is it still a problem? What makes a difference? You weren’t admitted to the Champions League last year, but fifth [in the Premier League] did this year. What does “” mean exactly?

Wenger objected to the Uefa’s revised rules in 2014, which made it possible for the Europa League winners to advance to the Champions League competition the following year.

When asked if this was “right,” he replied, “No, they should automatically qualify for the Europa League again, but not necessarily the Champions League,” especially when five teams have already qualified in the Premier League.” I believe it should be something to consider and review for Uefa.

On the other hand, “people will tell you that you must give them the prize of qualifying for the Champions League” to keep the Europa League focused, interesting, and motivated.

Without James Maddison, Tottenham face Bodo in Norway, with Postecoglou confirming that the England midfielder will miss the season due to a knee injury he sustained in the first leg.

related subjects

  • Europa League
  • Premier League
  • Tottenham Hotspur
  • Football

Postecoglou hits back at Wenger over CL spot row

Reuters

Ange Postecoglou says “Spurs does crazy things to people” in response to Arsene Wenger’s suggestion that the winners of the Europa League should not qualify for the Champions League.

Former Arsenal manager Wenger, now Fifa’s chief of global football development, has questioned why the winners of the Europa League qualify for next year’s Champions League.

Postecoglou’s Tottenham have a 3-1 lead going into Thursday’s Europa League semi-final second leg at Bodo/Glimt’s Aspmyra Stadion.

But they are 16th in the Premier League table, while Manchester United – who have a 3-0 lead over Athletic Club in the other last-four tie – are a point ahead in 15th. The winners will face each other in Bilbao on 21 May.

The pair will not qualify for Europe through the league but Postecoglou does not understand Wenger’s argument.

” You put that club into any sentence or any issue and invariably they all come out and try to diminish it as much as they can.

“It’s Spurs mate, they love it.

” It’s competition rules. Why wasn’t it an issue before and is it an issue now? What’s the difference? Last year fifth]in the Premier League] didn’t get you into the Champions League, this year it does. What does that mean? “

Uefa amended its rules in 2014 to allow the Europa League winners to qualify for the following season’s Champions League tournament, but Wenger disagreed with the policy.

Asked if this was” right”, he told BeIN Sports:” No, they should qualify automatically for the Europa League again but not necessarily for the Champions League – especially when you’re in the Premier League where already five teams qualify. I think it’s something]for Uefa] to think about and to review.

“On the other hand, people will tell you that to keep the Europa League focused, interesting and motivated you need to give them that prize]of qualifying for the Champions League]”.

Tottenham face Bodo in Norway without James Maddison, with Postecoglou confirming the England midfielder is out for the season with the knee injury he suffered in the first leg.

Related topics

  • Europa League
  • Premier League
  • Tottenham Hotspur
  • Football

That’s So Raven star hospitalised with life-threatening illness as fans donate to save actor

Rondell Sheridan, best known for his role as Victor Baxter on That’s So Raven, is recovering from a severe case of pancreatitis that left him hospitalised twice in April

(Image: Disney General Entertainment Content via Getty Images)

Beloved actor Rondell Sheridan, known to millions as Victor Baxter from Disney’s That’s So Raven, has been quietly battling a serious health crisis – but now he’s turning to fans for support during one of the most difficult chapters of his life.

The 65-year-old performer became gravely ill while traveling in April, which ended up with him staying in hospital. It was later revealed he has been diagnosed with what friends describe as an “extremely severe case of pancreatitis”.

Sheridan, who also starred in Cory in the House and Raven’s Home, broke his silence on social media Tuesday to share the news of his condition and ask for help via a GoFundMe campaign. The fundraiser, organized by close friend Isabel Beyoso, has already raised around $25, 000 toward its $35, 000 goal.

Rondell Sheridan is best known for his role as Victor Baxter on That’s So Raven
Rondell Sheridan is best known for his role as Victor Baxter on That’s So Raven(Image: Rondell Sheridan/Instagram)

“Hello friends and family. My name is Isabel Beyoso, and I am creating this page on behalf of my very dear friend Rondell Sheridan because he has been admitted to the hospital twice in the last month due to an extremely severe case of pancreatitis”, Beyoso wrote in the appeal.

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According to her update, Sheridan has been unable to work since April 12, 2025—and doctors have not been able to determine when, or if, he’ll be well enough to return. “He has not been able to work since April 12, 2025 and will not be able to return to work for the unforeseeable future”, she continued.

At this stage, medical teams are monitoring him closely but are limited in what they can do. “The doctors have said he just has to wait for his pancreas to do what it’s going to do before any further treatment can be considered”, Beyoso explained, adding, “In the meantime, he will be mostly bedridden, while in recovery”.

Victor was hospitalised twice last month
Victor was hospitalised twice last month(Image: Getty Images)

Supporters are being asked to help ease the financial burden while Sheridan focuses on healing. “If we can all come together to help him financially for his medical and monthly bills while his body heals, I know this will be one giant stress we can collectively take off his shoulders, so that he can focus on resting, recovering, and healing”, Beyoso wrote. “Every little bit helps and he appreciates you immensely”, the message concluded.

In addition to his Disney Channel fame, Sheridan has had roles in The Jamie Foxx Show, Kenan &amp, Kel, Cousin Skeeter, and A Different World, earning a devoted fan base across generations. Now, that same fan base is being called on to help one of their favorite sitcom dads through an unexpected health battle.

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