Fed Keeps Interest Rates Unchanged For 3rd Consecutive Time As Trump Tariffs Fuel Economic Uncertainty

Washington DC: The Federal Reserve left interest rates unchanged on Wednesday for the third straight meeting, maintaining the benchmark rate at 4.25% to 4.5%. The decision reflects a cautious approach as officials weigh the economic fallout from President Donald Trump’s escalating trade measures.

The Fed's statement noted that while the labor market remains “solid,” uncertainty about the economic outlook has “increased further,” with rising risks of both higher unemployment and higher inflation.

The move comes as the U.S. navigates a turbulent economic period under Trump’s second term. Since March, the administration has announced and then partially rolled back sweeping tariffs. However, a 10% universal tariff remains in effect, along with steep levies on steel, aluminum, cars and a 145% minimum tariff on Chinese goods.

The central bank signaled it will continue to monitor economic developments closely before making future rate changes.