Fed Holds Interest Rates Steady as Inflation Approaches Target

The Federal Reserve has paused its interest rate hikes, maintaining the current level as consumer spending slows and inflation inches closer to its 2% target. The latest Commerce Department data shows that prices rose just 2.1% in April compared to a year prior, down from 2.3% in March. This puts inflation within reach of the Fed’s goal, but officials remain cautious about changing course due to uncertainty surrounding tariffs and economic uncertainties.