New Delhi, June 19 -- As expected, the US Federal Reserve left the policy rate unchanged at 4.25 per cent to 4.50 per cent on June 18, reiterating the risks arising from the trade war triggered by President Donald Trump's tariff policies.

The Fed remains in "wait-and-watch' mode as it is early to authentically assess the real effective impact of Trump's tariffs on the world's largest economy.

Amid tariff-led uncertainty, the Fed believes inflation will rise and growth will falter in the US. Fed Chair Jerome Powell said inflation may accelerate over the summer as the impact of President Donald Trump's tariffs reaches US consumers.

The Fed forecast GDP growth of 1.4 per cent in 2025, down 0.3 per cent from the March meeting. By the end o...