Federal Reserve Holds Rates Steady Amid Economic Uncertainty

The Federal Reserve announced Wednesday that it will hold benchmark interest rates steady at 5.25-5.5%, citing mixed signals in the economy and persistent uncertainty about the inflation trajectory. Chairman Jerome Powell said the central bank remains "data-dependent" and has not ruled out further rate increases if inflation proves more stubborn than expected. Markets responded positively to the decision, with the S&P 500 gaining 1.2% in afternoon trading. The Dow Jones Industrial Average added 347 points. > We are committed to restoring price stability and we will do whatever it takes. — Jerome Powell, Fed Chairman Economists are divided on the outlook. Some argue the Fed has already done enough, while others believe more hikes may be needed.