The Federal Reserve has decided to maintain interest rates for the fourth consecutive meeting, signaling caution over potential stagflation and rising inflation expectations. Fed Chair Jerome Powell indicated that the central bank is well-positioned to wait on making further rate changes, although projections suggest that inflation may surpass 3% this year. Despite economic uncertainties, including tariff impacts and external pressures, the Fed has kept the door open for possible rate cuts later this year, while predicting a slower growth trajectory for the U.S. economy.