Fed Set to Hold Rates Steady as Middle East Crisis, Tariffs Cloud Outlook

The Federal Reserve is expected to keep interest rates unchanged on Wednesday as its policymakers assess signs of a cooling economy and the risk of higher inflation from U.S. import tariffs and the escalating crisis in the Middle East.

Since setting its benchmark interest rate in the current 4.25%-4.50% range in December, the Fed has watched the economic outlook grow cloudier, particularly after President Donald Trump returned to power in January and quickly overhauled U.S. trade policy by announcing sharply higher levies on imported goods...

 

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