US Fed rate pause keeps Asian markets steady, but watch out for tariffs: market observers

[SINGAPORE] The US Federal Reserve keeping rates steady is a plus for stability in Asia’s financial markets, but trade uncertainty from tariffs remains a key risk for equities and bonds in the region, said market observers.

The Federal Open Market Committee (FOMC) on Wednesday (May 7) agreed to leave the central bank’s benchmark interest rate unchanged in the 4.25 to 4.5 per cent range, citing higher inflation risks and increasingly uncertain economic outlook.

In a press conference, Fed chair Jerome Powell noted that trade policy remains a source of uncertainty that affirms the Fed’s need to be in a wait-and-see mode.