The Federal Reserve held interest rates steady at 4.25% to 4.5%, citing uncertainty from President Trump's trade policies and Middle East tensions. While Trump's tariffs have boosted imports, inflation remains low. The Fed projects rising unemployment and inflation this year, potentially leading to rate cuts. However, the timing and extent of these cuts depend on the impact of tariffs and the Middle East conflict. Recent retail sales declines and the potential for higher oil prices add to the uncertainty.

Prepared by Christopher Adams and reviewed by editorial team.