The Federal Reserve announced it will keep interest rates unchanged at 4.25% to 4.5%, citing ongoing economic uncertainty, persistent inflation, and stable labor market conditions.

Chair Jerome Powell emphasized that inflation has declined but remains above target, and noted rising risks of both higher inflation and unemployment, partly due to new tariffs.

Powell said rate cuts this year are possible but uncertain, depending on how the economy evolves, Fox Business has reported.

Markets now expect the Fed to hold rates steady through at least July as it waits for clearer economic data.

Written by B.C. Begley