The Federal Reserve will continue to monitor data, emphasizing uncertainties

The Federal Reserve will continue to monitor economic data on Wednesday, keeping its target range for the federal funds rate unchanged at 4.25% -4.50%, according to analysts Birgit Henseler and Christian Reicherter at the German Central Bank. The Fed will continue to monitor the data given the strong economic data, declining but still unconvincing low price pressures, and the potential inflation risks posed by tariffs. The Fed will remain on the sidelines to get a clearer picture of how Trump's economic policies are affecting inflation and the labor market.