Fed Declines to Cut Rates

The Federal Reserve announced that they will make no change to the interest rate benchmark Wednesday, leaving interest rates in the range of 4.25 percent to 4.5 percent. Chairman Jerome Powell pointed to a solid job market and inflation still above the central bank’s 2 percent target rate as part of the rationale for the decision.

Powell also acknowledged the potential impact of Donald Trump’s tariff plan on the economy, noting that “the effects on the economy remain highly uncertain,” but could result in higher inflation and unemployment. The relative good health of the economy gives the Federal Reserve the leeway to wait and evaluate changes as they happen, the chairman said.

The next meeting of the Federal Reserve Board will be held in June.