Federal Reserve's Steady Hand: U.S. Stocks Gain Amid Tariff Uncertainty

U.S. stocks rose as the Federal Reserve kept interest rates unchanged and hinted at possible cuts later. Investors focus on President Trump's tariff policies and their impacts on inflation. While economic growth is expected to slow, concerns about tariffs continue to influence market decisions and stock performances.

U.S. stock markets saw a rally on Wednesday following the Federal Reserve's decision to maintain interest rates, aligning with expectations. The ongoing scrutiny of President Trump's tariff policies continues to weigh on economic outlooks concerning inflation and growth.

The Federal Reserve kept its key overnight interest rate unchanged between 4.25% to 4.50% and hinted at two potential interest-rate cuts later in the year. Uncertainty remains as policies and economic indicators fluctuate, causing mixed reactions among policymakers.

Investor sentiment was lifted as Fed Chair Jerome Powell maintained his stance amidst tariff discussions, as traders anticipate rate cuts in 2025 to manage potential inflation and growth challenges. Meanwhile, major stock indices, including the Dow, S&P 500, and Nasdaq, posted notable gains.

(With inputs from agencies.)