The U.S. Federal Reserve held key interest rates steady Wednesday but said it still sees the possibility of two cuts later this year, with expectations that President Donald Trump's tariff policies will spike inflation.

For the fourth time this year, the Federal Reserve kept interest rates unchanged as it monitors the economic impact of President Trump’s tariffs. Officials had been prepared to lower rates, but growing uncertainty led them to hold steady.

Four meetings and six months have elapsed since the Fed last adjusted interest rates. The federal funds rate stands between 4.25% and 4.5%, preserving much of a sharp increase imp