US Fed likely to keep rates steady as Trump uncertainty flares [Video]

The US Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, treading carefully amid uncertainty over President Donald Trump’s economic policies, which include spending cuts and sweeping tariffs.

Since January, Trump has imposed levies on major trading partners Canada, Mexico and China, and on steel and aluminum imports, roiling financial markets and fanning fears that his plans could tip the world’s biggest economy into a recession.

The Trump administration has also embarked on unprecedented cost-cutting efforts that target staff and spending, while the president has promised tax reductions and deregulation down the road.

But Fed Chair Jerome Powell emphasized this month that it is the “net effect” of policy changes that will matter for both the economy and monetary policy.

Analysts widely expect the central bank to hold the benchmark lending rate steady at 4.25 percent to 4.50 percent, after similarly doing so …