US Federal Reserve holds interest rates steady

US Federal Reserve has kept its benchmark interest rate unchanged in the 4.25 per cent to 4.50 per cent range. The American central bank also indicated that two quarter-point interest-rate cuts are likely later this year. The Fed Reserve hiked its projection of US inflation for 2025 and downgraded the US economic growth forecast. The central bank’s second monetary policy decision of 2025 comes amid stagflation risks fueled by US President Donald Trump’s tariff hikes, which escalated a global trade war. The Federal Reserve took a wait-and-see approach to an uncertain US economy, opting to leave interest rates unchanged at the close of its March meeting. Fed Chair Jerome Powell told a news conference that they are not in a hurry to adjust policy stance, and are well-positioned to wait for greater clarity.