Australian shares ended flat with a positive bias on Thursday, as investors weighed reports that tariffs and ongoing uncertainty could hamper growth and fuel inflation this year.

The S&P/ASX 200 Index was little changed to close at 8,297.5.

Federal Reserve Vice Chair Philip Jefferson raised concerns about whether the impact of uncertainties on inflation will be temporary or long-lasting, Bloomberg reported.

However, Jefferson said he still expects the economy to grow and noted that monetary policy remains well-positioned to respond to any potential economic shifts.

"Of course, trade policy is still evolving, so its ultimate economic implications are not known," Jefferson added.

On the domestic front, Australia's seasonally adjusted unemployment rate came in at 4.1% in April, unchanged from March, data from the Australian Bureau of Statistics showed.

The CommBank household spending insights index rose 0.2% in April, a very modest lift following a soft first quarter of spending in 2025, the bank said.

Market sentiment across ASX-listed companies has shifted in April, reflecting developments in global trade, domestic politics, and the monetary policy, according to a report from Jarden.

In company news, Treasury Wine Estates (ASX:TWE) said Chief Executive Officer Tim Ford resigned, effective Oct. 27. Shares of the company fell 5% at market close.

GrainCorp (ASX:GNC) reported fiscal first-half diluted earnings of AU$0.261 per share, compared with AU$0.22 per share a year earlier. Shares of the company rose 9% at market close.

Lastly, Peak Rare Earths (ASX:PEK) entered into a binding agreement with shareholder Ganzhou Chenguang Rare Earths New Material, a unit of China-based rare earth company Shenghe Resources, for AU$150.5 million. Shares of the company surged 171% on close and earlier hit a near 18-month high.