Federal Reserve leaves interest rates unchanged

The Federal Reserve announced on Wednesday that it would not change its benchmark interest rate as policymakers continued to assess uncertainty about inflation and economic conditions in light of federal policy change.

The central bank’s decision leaves the benchmark federal funds rate from 4.25 % to 4.5 %.

The move came after the left prices of the feed at the level at its previous meeting in January, which came out at its previous meetings with the help of deductions at three consecutive rates-which included a reduction of 50 twenty points in September and a reduction of 25 points in November and December.

The Federal Open Market Committee (FOMC), which guides the central bank’s monetary policy measures, noted in its announcement, “The uncertainty around the economic approach has increased” and added that its dual mandate has increased the risk of both sides on both sides.

In addition to announcing its decision on interest rates, the FOMC released a summary of economic estimates, which states that the central bank’s policy makers are predicting a decrease in interest rates this year, two deductions of that size in 2026 and one in 2027.

Policy makers gradually estimated economic growth and high unemployment in 2025, compared to their final estimates in December.

They see that by the end of 2025, real overall domestic products (GDP) are increasing 1.7 %, which is less than 2.1 % estimate, while the unemployment rate in December is likely to be 4.4 % – which is more than 4.3 % in the final estimate. The unemployment rate in February was 4.1 percent.

The economic estimates of the feed also in the personal consumption costs (PCE) index, the priority inflation gauge of policy makers, which is 2.7 % at the end of this year, is more than 2.5 % estimated at the end of the last year. This is slightly above 2.5 % of the PCEs reported for February.

In a press conference, Fed Chair Jerome Paul noted, “Some close -ups of inflation expectations have recently moved forward. We look at it in both market and survey -based measures. And the survey responders, both consumers and businessmen, are borne as a businessman.”

He also said that “the labor market is not a source of significant inflation,” and noticed that “inflation has dropped significantly in the last two years, but our 2 % is somewhat higher than the long -term purpose.”

Paul was asked how much inflation predicted is at least some extent.

Paul explained, “You may have noticed that the inflation of goods has increased significantly in the first two months of the year. Trying to find out that the actual tariff was indicated and what was not – very, very difficult,” he said. “So some of this-the answer is clearly some of it, a good part of it, coming from the rates. But we will work, as well as other predictions, will try to find the best possible way to separate non-tariff inflation from tariff inflation.”

This is a developing story. Please check again for updates.