The Federal Reserve has decided to maintain interest rates at their current level, hinting at possible future reductions. This move comes as economic expansion is decelerating, with inflation continuing to exceed the targeted 2%, currently standing at 2.5%. Tariffs have played a role in driving up inflation by increasing the costs of imports. To help stabilize the markets, the Fed plans to increase its investments in Treasury securities. Consumer confidence remains tepid as there are concerns that inflation could spike to 3% by the end of the year due to import duties.