Fed Holds Rates Steady for Third Straight Meeting as Tariff Uncertainty Clouds Outlook
The Federal Reserve held its benchmark interest rate unchanged at 4.25% to 4.5% for the third consecutive meeting in May 2025, as policymakers warned of growing stagflation risks from the administration's tariff policies. Fed Chair Jerome Powell signaled the central bank will wait for clearer data before making any move, while firmly defending its independence from political pressure.
