Good morning. The Federal Reserve announced on Wednesday it would leave interest rates unchanged as more clarity is needed about where the economy is headed as a result of changes to U.S. trade policy.
The federal funds rate, which banks use to borrow from one another overnight, remains at a target range of 4.25% to 4.5%. Although economic activity continues to expand at a solid pace, inflation remains somewhat elevated, the Federal Open Market Committee said in a statement. "Uncertainty about the economic outlook has increased further."
"There's so much uncertainty about the scale, scope, timing, and persistence of the tariffs," Fed Chair Jerome Powell said during a press conference on Wednesday. There's an expectation that inflation will move further above target. "It's not a situation where we can be preemptive," he said.
