Federal Reserve Holds Steady on Interest Rates Amidst Tariff Uncertainty

The Federal Reserve announced on Wednesday that it would maintain its current benchmark interest rate as officials review the economic effects of President Donald Trump’s comprehensive tariffs. During a press briefing following the meeting, Fed Chair Jerome Powell highlighted the robust state of the U.S. economy, while noting that the tariffs could significantly influence its future course. As a result, Powell indicated the Fed is in no rush to alter rates and can afford to exercise patience.

U.S. stocks saw a positive end to the day as the Federal Reserve decided to keep its benchmark rate unchanged, aligning with market expectations. Fed Chair Jerome Powell remarked that considerable uncertainty surrounds the impact of President Trump’s tariff strategy. The Dow rose by 285 points, or 0.7%, while the S&P 500 climbed 0.43%, having wavered between gains and losses throughout the day. The Nasdaq Composite increased by 0.27% after spending much of the session in the negative before rallying in the afternoon. Investors broadly anticipated the Fed’s decision to maintain steady rates. Powell reiterated that the central bank sees no urgency in modifying its monetary policy at this time.”