The Federal Reserve held its benchmark interest rate steady Wednesday, indicating it will keep somewhat to the sidelines while it evaluates the coming effects of President Donald Trump's tariffs and other economic policies.
"Given where we are, we think our policy is in a good place, to react to what comes, and we think the right thing to do is to wait here for greater clarity about what the economy is doing," Fed Chair Jerome Powell said.
It is the second straight pause in rates, after the Fed raised them three times in sequential meetings at the end of last year.
"The costs of borrowing more money remain high for consumers, and that's where they're going to be for the foreseeable future," American Staffing Association chief economist Noah Yosif told Scripps News.
RELATED STORY | How higher interest rates can earn you money
The rate news heads up other indicators release by the Fed Tuesday, forecasting slower growth and softer employment ahead. Unemployment was forecast to reach 4.4% by the end of the year, while inflation was expected to creep higher over the same timeframe, to about 2.7%.
The interest rate could therefore be walking a tightrope over the next year as the Fed seeks to keep prices stable. Rates are typically raised when inflation increases, and lowered in cases where the Fed wants to promote a jump in employment or growth.
The Federal Reserve indicates it may cut rates twice over the course of the year, depending on how those economic indicators shift.
