Published May 7, 2025 2:03pm EDT
Federal Reserve holds key interest rate steady amid economic uncertainty
Fed is holding interest rates steady for its third straight meeting amid economic uncertainty over inflation, tariffs
By Eric Revell FOXBusiness
The Federal Reserve on Wednesday announced that it will leave its benchmark interest rate unchanged as policymakers continue to monitor inflation and the labor market amid elevated levels of economic uncertainty.
The central bank's decision leaves the benchmark federal funds rate at a range of 4.25% to 4.5%.
It comes after the Fed left rates at that level at its two previous meetings in January and March, which followed three consecutive rate cuts at its preceding meetings – which involved a 50-basis-point cut in September and a pair of 25-basis-point reductions in November and December.
The Federal Open Market Committee (FOMC), which guides the central bank's monetary policy moves, noted in its announcement that "
ncertainty around the economic outlook has increased further" and the Fed is monitoring risks to both sides of its dual mandate, adding that risks of higher unemployment and higher inflation have risen.
This is a developing story. Please check back for updates.
https://www.foxbusiness.com/economy/federal-reserve-interest-rate-decision-may-2025
