Federal Reserve Holds Interest Rates Steady

On Wednesday, the US Federal Reserve said at the conclusion of its Federal Open Market Committee (FOMC) meeting that it has decided to hold its key interest rate unchanged as it waits for the Trump administration’s trade policy to take shape and sees its impact, CNBC reported (5-7-25).

The FOMC held its benchmark overnight borrowing rate in a range between 4.25–4.50%, where it has been since December.

The post-meeting statement noted the volatility and how that is factoring into policy decisions: “Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”