The Federal Reserve, the central banking authority of the United States, has decided to keep its benchmark interest rate unchanged in the range of 4.25% to 4.5%.

This decision reflects continuity in the Fed's policy, which was also maintained during its previous meeting in January.

The central bank's cautious stance comes amid growing economic uncertainties linked to tariff policies initiated under former President Donald Trump.

These tariffs have increased costs for consumers and businesses across the nation.

The U.S. government has recently imposed tariffs on goods imported from Canada, Mexico, and China, although some tariffs on Canadian and Mexican products have been rescinded.

This tariff strategy is expected to contribute to inflationary pressures, as domestic firms may elevate prices to offset their rising costs.

Former President Trump has indicated that he is not dismissing the possibility of a recession, adding to the climate of uncertainty.

Key economic indicators suggest the potential for an economic slowdown, with rising unemployment rates, reduced consumer spending, and a drop in business investment.

The Federal Reserve has revised its outlook for economic growth, lowering its forecast for Gross Domestic Product (GDP) growth to 1.7% for the current year, down from the earlier estimate of 2.1%.

The Fed's projections for interest rates indicate a committed approach to managing inflation, with an average benchmark rate predicted at 3.9% for 2025, suggesting the likelihood of two minor rate increases this year.

Aiming to contain inflation at around 2%, the Fed has increased its inflation expectations, forecasting an average rate of 2.7% for this year, up from a previous estimate of 2.5%.

Additionally, core inflation, which excludes volatile food and energy prices, is anticipated to reach 2.8%, indicating a rise from earlier forecasts.