As expected, the Fed decided to keep its policy rate steady for the fourth consecutive time this year. Following the regularly scheduled two-day meeting of the Federal Open Market Committee (FOMC) that concluded on Wednesday, Fed chairman Jerome Powell announced that the target range for the federal funds rate would be kept at 4.25 to 4.50 for the time being, saying that it was still too early to predict the tariff impact on prices and the economy and that the committee felt well-positioned to continue to wait and see.

"Changes to trade, immigration, fiscal and regulatory policies continue to evolve, and their effects on the economy remain uncertain," Powell said. "The effects of tariffs will depend, among other things, on their ultimate level. Expectations of that level, and thus of the related economic effects, reached a peak in April and have since declined. Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity."

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