The Federal Reserve Wednesday opted to stand pat on interest rates, pausing its recent easing campaign as policymakers weigh economic crosscurrents and growing questions about the central bank’s independence.

As widely expected by markets, the Federal Open Market Committee voted to keep its benchmark rate in a range of 3.5% to 3.75%, CNBC reports.

The move breaks a streak of three straight quarter-point cuts that officials had characterized as precautionary steps to cushion the labor market.

In its post-meeting statement, the Fed struck a more confident tone on economic growth while dialing back concern about job-market weakness relative to inflation.

“Available indicators suggest that economic activity has been expanding at a solid pace,” the committee said. “Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.”

Notably, policymakers removed language suggesting that risks to the labor market outweighed inflation risks — a shift that signals officials now see the Fed’s dual mandate of price stability and maximum employment as more evenly balanced.

The statement offered little clarity on when rates might move again. Investors broadly expect the Fed to stay on hold until at least June.

“In considering the extent and timing of additional adjustments,” the committee said it would continue to evaluate incoming data, the economic outlook, and risks — repeating language added late last year that markets interpreted as a step away from the rate-cut cycle that began in September 2025.

The decision was not unanimous. Governors Stephen Miran and Christopher Waller dissented, favoring another quarter-point cut.

Both were appointed by President Donald Trump, with Miran filling an unexpired board seat in September 2025 and Waller originally named during Trump’s first term. Miran’s term expires Saturday, while Waller, who previously interviewed for the Fed chair role, is not seen as a leading contender.

The otherwise routine meeting comes amid an unusually turbulent moment for the central bank.

Chair Jerome Powell has just two meetings remaining before his term ends, closing out a volatile eight-year tenure marked by the pandemic, a sharp recession, and repeated clashes with Trump.

The Justice Department has recently subpoenaed Powell over renovations at the Fed’s Washington headquarters, and Trump has openly threatened to remove him from office.

The president has also moved to fire Governor Lisa Cook, a case now awaiting review by the Supreme Court.

Those developments have fueled a broader debate over the Fed’s independence. Powell has acknowledged that the pressure reflects Trump’s desire to exert greater control over monetary policy — an approach more aggressive and public than that taken by previous presidents.

Economically, the Fed faces a mixed picture.

Growth remains strong, with gross domestic product expanding at a 4.4% annual rate in the third quarter and tracking near 5.4% in the final months of the year, according to the Atlanta Fed.

Hiring has slowed amid the Trump administration’s crackdown on illegal immigration, but layoffs remain subdued, with initial jobless claims near a two-year low.

Inflation, however, continues to test policymakers’ patience. While well below its 2022 peak, price growth is still hovering closer to 3% than the Fed’s 2% target, prompting some officials to argue for a prolonged pause — or an end — to rate cuts.

Trump’s tariffs remain an additional wildcard. Fed economists generally expect the duties to add short-term inflation pressure that fades later in the year.

Markets are now pricing in no more than two rate cuts in 2026 and none in 2027, regardless of who replaces Powell.

Prediction markets currently point to BlackRock bond chief Rick Rieder as the most likely next Fed chair.