Summary

The Federal Reserve wrapped up its latest Open Market Committee meeting on Wednesday and, as expected, maintained its fed-funds target rate at the 4.25-4.50% level. That was the fourth meeting in a row at which the central bank held policy steady after cutting rates three times in late 2024. The non-decision indicates that the Fed still has concerns over lingering -- and potentially future - inflation, and is keeping an eye on the overall economy. Further, the central bankers, like the rest of the country, are wary over the potential impact on prices and on GDP from the Trump administration's tariff initiatives. CPI inflation has fallen from readings above 9.0% in 2022 to readings below 3.0% -- but lately has struggled to extend its downward trend toward the central bank's goal of 2.0%. Yet the unemployment rate remains historically low even as GDP growth dipped into negative territory last quarter (due to a quirky import number). Based on the healthy employment environment, the economy is not in dire need of lower rates. Yet. Wednesday's meeting also included the central bank's current projection data points. The