As widely expected, the Federal Reserve held its policy rate at 4.25%-4.50% on Wednesday for a fourth straight meeting as the central bankers wait for further clarity in the evolving economic outlook.

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.

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Inflation has come down a great deal but has been running somewhat above our 2 percent longer-run objective. In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged.

Tariffs will likely push inflation higher in the months ahead. Powell, speaking at a press conference following the Federal Open Market Committee’s rate decision, emphasized the high level of uncertainty facing the economy but was much more certain about this specific inflation risk.