[HONG KONG] Asian stocks fell on Thursday after the Federal Reserve warned Donald Trump’s trade war would likely reignite US inflation and dampen economic growth, while oil prices edged down as investors awaited developments in the Israel-Iran conflict.
While geopolitical tensions are the key focus for markets, traders were also watching the US central bank’s latest meeting Wednesday as officials gathered to discuss monetary policy in light of the president’s tariff blitz.
The Fed kept borrowing rates on hold for a fourth consecutive meeting, as expected, and said in a statement that “uncertainty about the economic outlook has diminished but remains elevated”.
It later cut its economic growth forecast for this year and raised inflation and unemployment expectations, in its first updated projections since Trump unveiled his levies on most trading partners at the start of April.
Boss Jerome Powell called the economy “still…
