The Federal Reserve’s policy committee is in wait-and-see mode. The U.S. economy has entered 2025 with plenty of momentum, a briefly shaky labor market appears to have stabilized, and recent months’ inflation readings have been stubbornly above the Fed’s 2% annual target.

President Trump may want lower interest rates, but the Federal Reserve will almost certainly keep its benchmark interest rate unchanged at its two-day policy meeting that ends Wednesday.

The Federal Reserve is nearly certain to keep its key interest rate unchanged at its policy meeting this week, just a few days after President Donald Trump said he would soon demand lower rates