US Federal Reserve officials expressed concern that they could face a challenging decision if President Donald Trump's tariffs bring a surge in inflation, according to minutes from the US central bank's May meeting, released on Wednesday.
The May 6-7 meeting minutes showed central bankers felt a heightened degree of uncertainty for the economic outlook, largely because of tariffs.
As a result, Fed officials decided to leave rates unchanged at about 4.3 per cent. The Central Bank of the UAE announced it had also left its rate unchanged after the US central bank's decision.
Fed officials also saw rising risks to both sides of their dual mandate: price stability and maximum employment.
"The committee might face difficult trade-offs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” minutes from the meeting read.
And "almost all” officials said inflation could be more persistent than expected, while also highlighting the importance of keeping longer-run inflations in check.
"Participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases,” the minutes read.
Mr Trump's tariff agenda has created a dilemma for the Fed. Economists argue tariffs could lead to higher inflation – which the Fed would counter with higher interest rates – and a weakening employment situation – which the central bank would counter with lower interest rates.
Minutes from the May meeting underscore the cautious approach Fed officials are taking in response to Mr Trump's changing tariff decisions.
Trade tension between the US and China abated a few days after the Fed meeting, with Washington and Beijing agreeing to a 90-day pause on most tariffs.
The US and UK also agreed to a trade deal this month. On Sunday, Mr Trump said he would delay a 50 per cent tariff on the EU until July 9, just 48 hours after pledging to impose the new charges on the 27-member bloc.
Since their most recent meeting, officials have largely echoed Fed chairman Jerome Powell's assertions that they need more clarity before deciding when to lower rates again.
And inflation is still running above the Fed's 2 per cent target.
"These arguments support a stance of maintaining the policy rate … until there is more clarity on the path for tariffs and their impact on prices and economic activity,” Minneapolis Fed president Neel Kashkari said in Tokyo on Tuesday.
The Fed will hold its next two-day meeting from June 17-18, when the central bank will release updated projections on officials' outlook for inflation, employment and economic growth. Officials will also update their projected interest rate target range.
Projections released in March showed a median forecast of two rate cuts for 2025.
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Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
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Brief scoreline:
Wales 1
James 5'
Slovakia 0
Man of the Match: Dan James (Wales)
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Mohammed bin Zayed Majlis
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
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Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
Tomorrow 2021
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
The five pillars of Islam
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4.
5.
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Five healthy carbs and how to eat them
Brown rice: consume an amount that fits in the palm of your hand
Non-starchy vegetables, such as broccoli: consume raw or at low temperatures, and don’t reheat
Oatmeal: look out for pure whole oat grains or kernels, which are locally grown and packaged; avoid those that have travelled from afar
Fruit: a medium bowl a day and no more, and never fruit juices
Lentils and lentil pasta: soak these well and cook them at a low temperature; refrain from eating highly processed pasta variants
Courtesy Roma Megchiani, functional nutritionist at Dubai’s 77 Veggie Boutique
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
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2018 ICC World Twenty20 Asian Western Regional Qualifier
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Rating: 4.5/5
