The Federal Reserve left interest rates unchanged Wednesday, keeping its benchmark rate at 4.25% to 4.5% as it assesses the economic impact of President Donald Trump's trade policies. The unanimous decision marks the fourth straight meeting with no change to the fed funds rate, which has held steady since December after three cuts last year.
In its policy statement, the Fed signaled caution, noting rising risks to both inflation and employment. Officials cited uncertainty from recent tariffs, most of which took effect in April, as a key factor clouding the economic outlook.
"The Committee is attentive to the risks to both sides of its dual mandate," the statement read, highlighting concerns that inflation could rise while job growth slows.
