Federal Reserve Holds Rates Steady Amid Economic Uncertainty

The Federal Reserve maintained interest rates unchanged, citing a resilient US economy expanding at a "solid pace" despite trade-related headwinds. Inflation remains elevated, and labor conditions robust, though the Committee acknowledged heightened concerns about the outlook. Unemployment stays low, with the labor market described as stable—yet the Fed warned of mounting unpredictability in the broader economic landscape.

"Uncertainty about the economic outlook has increased further," the statement noted, highlighting rising risks of both higher unemployment and persistent inflation. While the central bank continues tightening monetary policy, it paused rate hikes to assess evolving conditions. Its dual mandate—anchoring inflation NEAR 2% and maximizing employment—remains intact, but the path forward grows increasingly opaque.