Fed Holds Rates Steady Amid Trump's Economic Policies

The Federal Reserve maintained interest rates, assessing the impact of President Trump's economic policies, which include import tariffs and deregulation. Fed Chair Jerome Powell emphasized a cautious approach to adjusting rates, amidst stable unemployment and persistent inflation above target levels. Investors anticipate no rate cuts until June.

The Federal Reserve opted to maintain interest rates steady on Wednesday, signaling caution in making further rate reductions amidst ongoing inflation challenges and stable economic growth.

Fed Chair Jerome Powell stated that policymakers are closely monitoring President Trump's economic policies, like the introduction of import tariffs and potential regulatory changes, before deciding on future rate adjustments.

While the Fed forecasts continued economic stability, concerns over persistent inflation have led to a holding pattern on rate changes, with investors not expecting adjustments until mid-year.

(With inputs from agencies.)