Fed Holds Interest Rates Steady Amid Economic Uncertainty

The Federal Reserve maintained its benchmark interest rate at 4.25%-4.5% during its May 2025 meeting, citing economic uncertainties as the primary factor behind the decision. The Fed’s cautious approach reflects concerns about potential tariff impacts on inflation, growth, and employment. Although inflation is currently in line with targets, some economists anticipate a shift towards rate cuts once inflationary pressures subside. 4.25% to 4.5% has been the current rate for nearly a year now. This strategy reflects a ‘wait-and-see’ approach as the Fed monitors the impact of tariffs and economic trends. ,