The US Federal Reserve has kept its benchmark interest rates unchanged in the 4.25 per cent to 4.50 per cent range. The American central bank said in its policy statement that since the last meeting of the Fed in March, uncertainty about the economic outlook has increased further.

US Fed Chairman Jerome Powell said in a post-meeting news conference that they are not in a hurry to cut interest rates due to the high level of uncertainty in the US economy, along with the inflation risk imposed by the high tariffs on imports. The Federal Reserve has extended its wait-and-see approach and decided against taking a presumptive cut.

The Fed’s policy rate has been unchanged since December as officials struggle to estimate the impact of US President Donald Trump’s tariffs, which have raised the prospect of higher inflation and slower economic growth this year. In its previous meeting in March, the central bank had anticipated reducing the benchmark rate by half a percentage point by the end of this year.