The U.S. Federal Reserve announced on Wednesday, May 7, that it is holding its main interest rate steady at up to 4.5 percent. The central bank stated it needs more clarity on the direction of the economy before making any decisions to cut rates.
The decision comes amid ongoing economic uncertainty, particularly due to the impact of tariffs on the U.S. economy. The Fed expressed caution in cutting rates too soon, highlighting the need to carefully assess economic indicators before adjusting monetary policy.
“We are closely monitoring the implications of global economic developments for the U.S. economic outlook,” the Federal Reserve said in a statement. “We will act as appropriate to sustain the expansion.”
The decision to maintain the current interest rate means borrowing costs for consumers and businesses will remain unchanged for now. This move aims to support continued economic growth while keeping inflation in check.
