Editorial

15:20 JST, June 20, 2025

In addition to U.S. President Donald Trump’s high tariff policy, growing tensions over Israel and Iran are adding further uncertainty to the outlook for the U.S. economy.

The immediate focus for the U.S. economy is on whether inflation will be reignited. The U.S. Federal Reserve Board will be tested on its ability to carefully analyze that point.

The Fed has decided to leave its policy rate unchanged at 4.25%-4.50% per year. This is the fourth consecutive meeting since the launch of Trump’s second administration that the rate has been kept unchanged. The Fed projected that it will cut the rate twice in 2025, the same as in the previous projection in March.

The economy has so far remained robust despite high tariff measures that........

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