Federal Reserve doesn’t budge on interest rates

Fed Chair Jerome Powell creates a space between his thumb and the index finger on his right hand as he speaks at a podium with an American flag in the background. (Credit: Tom Williams—CQ-Roll Call, Inc via Getty Images)

• Nearly all of Wall Street anticipated the Fed would stand pat on monetary policy as current economic data remains relatively strong. An eventual worst-case scenario would involve tariffs causing stagflation, the dreaded combination of higher prices and rising unemployment that puts central banks in a difficult position. 

The Federal Reserve has yet to move interest rates in 2025 as the central bank continues its “wait-and-see” approach in the aftermath of President Donald Trump’s tariffs.