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Steady Hands: Federal Reserve Holds Rates Amid Economic Uncertainty
The Federal Reserve is expected to maintain its current interest rates as officials seek a clearer picture of the U.S. economy’s trajectory. With conflicting signals—ranging from a slowdown in first-quarter GDP to strong employment data—policymakers are opting for caution rather than immediate action.
Investors anticipate that the Fed will keep rates within the 4.25%-4.50% range until at least July. While inflation has shown signs of easing, underlying price pressures remain, and the impact of President Trump’s tariffs on consumer costs is still unfolding.
Fed Chair Jerome Powell has emphasized the need for patience, acknowledging the uncertainty surrounding fiscal policies and their potential economic consequences. As the central bank waits for more definitive data, markets remain watchful for any shifts in monetary policy that could influence borrowing costs and economic growth.
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