Key Takeaways The Federal Reserve kept the central bank's key interest rate in a range of 4.25% to 4.5%, the same as it's been since December.The Fed has been waiting to see how President Donald Trump's tariffs affect the economy before making any moves.

It is unusual for the Fed to say that the risk of both higher prices and more unemployment have increased. But economists say that is the threat created by Trump’s sweeping tariffs.