Fed Pauses Rate Hikes Again Amid Inflation and Recession Concerns
The U.S. Federal Reserve held its benchmark interest rate steady at 4.25%–4.50%, marking the third consecutive pause as economic uncertainties mount. Policymakers cited rising risks to both inflation and employment, with price growth stubbornly above the 2% target.
Market expectations had largely priced in the pause, though traders increasingly anticipate potential rate cuts by mid-year. The Fed’s cautious stance reflects broader macroeconomic tensions—legacy effects of Trump-era tariffs, slowing growth indicators, and persistent inflationary pressures.