Fed Maintains Interest Rates Amid Economic Uncertainty

The Federal Reserve has held its benchmark interest rate steady at 4.25% to 4.5% for the third consecutive meeting, despite President Trump's pressure for rate cuts and ongoing economic uncertainty tied to his administration's tariff policies. Fed Chair Jerome Powell and official statements cited elevated risks of both inflation and unemployment, noting that recent tariffs could slow economic growth and increase inflation. Although the U.S. economy contracted in the first quarter of 2025 for the first time in three years—largely due to trade disruptions—the labor market remains stable with low unemployment. The Fed emphasized a cautious, data-driven approach, stating it does not 'need to be in a hurry' to adjust rates as it monitors the evolving economic impact of tariffs. Real estate and financial experts believe the decision will keep capital costs relatively stable for now, with market focus more on resolving international trade tensions than immediate rate changes. Analysts noted that future monetary policy will depend on whether risks of inflation or unemployment become more pronounced in the coming months.