Markets in Limbo: Fed's Steady Rates Amid Economic Uncertainty

U.S. stock prices fell as the Federal Reserve left interest rates unchanged, stirring concerns over inflation and unemployment. The Dow managed slight gains, while the S&P 500 and Nasdaq declined. Investors anticipate insights from Fed Chair Jerome Powell and the potential for a rate cut in July.

On Wednesday, U.S. stock prices declined after the Federal Reserve opted to keep interest rates unchanged. In a move that was widely predicted, the Dow managed to hang onto modest gains despite the uncertainty.

The Fed's decision comes amid heightened risks of inflation and unemployment, complicating the economic landscape affected by Trump administration tariff policies. Following the announcement, the Dow Jones Industrial Average climbed 13.95 points, while the S&P 500 and Nasdaq Composite saw declines of 27.38 and 182.19 points, respectively.

Fed Chair Jerome Powell's forthcoming comments are keenly anticipated by investors seeking direction amid President Donald Trump's global trade tensions. Markets are factoring in a potential rate cut in July, as indicated by LSEG data.

(With inputs from agencies.)