Fed Holds Rates Steady; Growth Slows, Inflation High

The US Federal Reserve has kept its key interest rate unchanged at 4.25%-4.5% for the third consecutive meeting, maintaining a cautious stance amid economic uncertainties and continued pressure from President Donald Trump for rate cuts. Fed officials cited solid ongoing economic expansion but noted that first-quarter growth slowed to its weakest in almost three years. Policymakers highlighted heightened risks of both higher unemployment and inflation and provided no indication of when rate cuts might resume. The Fed reiterated its commitment to independence and its dual mandate despite political pressure. Markets responded modestly, with stock indices fluctuating and longer-term Treasury yields declining. The central bank's higher rates are aimed at countering post-pandemic inflation but have also led to increased borrowing costs for consumers and businesses.