The Globe and Mail reports in its Thursday edition that the Federal Reserve kept its key interest rate at 4.3 per cent for the third consecutive meeting, ignoring President Donald Trump's calls to lower borrowing costs. A New York Times dispatch to The Globe reports that the Fed noted rising risks of higher unemployment and inflation. Despite this, many economists and investors anticipate rate cuts later this year, although Mr. Trump's tariffs have introduced significant uncertainty into the economy and the Fed's policies. Fed Chair Jerome Powell underscored that the tariffs have dampened consumer and business sentiment but have yet to noticeably harm the economy. At the moment, Mr. Powell said, there is too much uncertainty to say how the Fed should react. "If the large increases in tariffs that have been announced are sustained, they're likely to generate a rise in inflation, a slowdown in economic growth and a rise in unemployment," Mr. Powell said. The impacts could be temporary, or more persistent, he added. "There's just so much that we don't know," he added. "We're in a good position to wait and see." It is unusual for the Fed to say that the risk of both higher prices and more unemployment have increased.