The Federal Reserve kept interest rates unchanged Wednesday, hitting the pause button at its first meeting this year and signaling risks to the economy are dropping.
The widely expected decision to enter a holding pattern comes after the central bank cut rates three times at the end of 2025, moves that officials and economists say were aimed at insulating the labor market as hiring slowed. With job growth decelerating but the economy showing few signs of distress, policymakers now say they can afford to be patient as they watch whether inflation continues to cool.
