Fed holds main rate steady as Trump tariff threat poses inflation risk.
The Federal Reserve held the benchmark interest rate steady Wednesday amid concerns that Trump administration plans for tariffs, deregulation, mass deportations and tax cuts may spur inflation in coming months.
With economic growth steady and inflation persisting above their 2% target, policymakers kept the federal funds rate at a range between 4.25% and 4.5%. Their pause followed three consecutive cuts last year that reduced the main interest rate by a full percentage point.
This is a developing story. Read more on our website for live updates.
