The central bank held steady on rates, keeping them at a range of 4.25% to 4.5%, but highlighted rising inflation risk.

While Fed Chair Jerome Powell suggested it’s in a “good position” to act decisively if necessary, some economists worry this approach could make the central bank slow to respond to a downturn.  Consumer sentiment has plummeted amid trade policy uncertainty,

The central bank stuck to a wait-and-see approach as officials brace for President Trump’s tariffs to stoke higher inflation and slower growth.