Federal Reserve Holds Interest Rates Steady as Tariff Uncertainty Looms

The central bank cites concerns over inflation and economic growth while facing pressure from President Trump to lower rates.

The Federal Reserve decided to maintain its interest rate range at 4.25%-4.5%, citing significant economic uncertainty tied to trade policies and tariffs.
Fed officials, including Chair Jerome Powell, warned that upcoming tariffs set to take effect on April 2 could increase inflation and slow economic growth.
President Trump has publicly criticized the Fed's decision, urging rate cuts and emphasizing falling prices for goods like eggs and gasoline.
Chicago Fed President Austan Goolsbee and New York Fed President John Williams highlighted the challenges of navigating policy decisions in an unpredictable economic environment.
The Federal Reserve projects two rate cuts in 2025 but remains cautious, emphasizing the need to avoid premature decisions that could worsen inflation or economic downturns.