The Federal Reserve held interest rates steady at 4.25% to 4.50% on Wednesday, marking its third straight pause, according to Benzinga. The Fed noted continued solid growth but flagged distortions from volatile net exports and introduced new language highlighting rising risks of both inflation and unemployment. Policymakers maintained their data-dependent approach, saying decisions will be made "meeting by meeting." The pause comes amid fresh trade tensions following Trump’s April tariff announcement and renewed political pressure for rate cuts. Traders now see a 73% chance of a rate cut by July, and expect roughly 65 basis points of easing by year-end. Markets reacted quietly, with the S&P 500 flat, Treasury yields slightly lower, and the dollar slipping.
