The U.S. Federal Reserve announced its decision to keep the benchmark federal funds rate unchanged in the range of 4.25%-4.5% for the fourth consecutive meeting. This decision, widely anticipated by financial markets, comes despite mounting pressure from President Donald Trump to lower borrowing costs and a series of milder-than-expected inflation reports in recent months. Federal Reserve Chair Jerome Powell extensively explained the central bank's rationale, citing primary concerns over the uncertain economic impact of President Trump's tariff policies.

Powell and other Fed officials anticipate that the cost of import taxes will eventually be passed through to consumer prices, potentially causing a rebound in official inflation measures like the Consumer Price Index. The Fed is also awaiting further clarity on new tariffs Trump intends to place on various products, including pharmaceuticals, computer chips, and lumber, in addition to existing tariffs on steel, aluminum, and foreign cars. Powell emphasized the forward-looking nature of monetary policy, stating that the Fed is