Overview

• The Federal Open Market Committee unanimously decided to keep the federal funds rate at 4.25%–4.50%, continuing its data-driven approach to monetary policy.
• The Fed highlighted heightened uncertainty in the economic outlook, with increased risks of higher inflation and unemployment.
• Recent economic indicators show solid growth, low unemployment, and slightly elevated inflation, supporting the decision to hold rates steady.
• President Trump continues to push for rate cuts and ruled out reducing tariffs on China, adding to the economic and political complexity.
• The Fed reaffirmed its independence and commitment to evaluating incoming data and risks before making future adjustments.