Washington: The U.S. Federal Reserve announced on Wednesday a decision to maintain current interest rates, halting a recent series of rate cuts aimed at addressing economic risks. According to Namibia Press Agency, the Federal Open Market Committee opted to keep key interest rates between 3.5 percent and 3.75 percent. This decision interrupts a sequence of rate reductions over the past three quarters, which were implemented to mitigate economic risks, including labor market weaknesses, rising inflation, and general uncertainty. The Federal Reserve's statement following the meeting indicated that while economic activity is expanding steadily, job growth remains subdued, and the unemployment rate shows signs of stabilization. Inflation continues to be slightly above desired levels. The central bank offered limited guidance regarding future rate changes, citing that any decisions will be influenced by forthcoming data, economic outlook developments, and the overall balance of risks. Some economists predict ad ditional rate cuts in 2026, with Gary Clyde Hufbauer from the Peterson Institute for International Economics forecasting three cuts due to rising unemployment and persistent inflation. Contrastingly, Dean Baker from the Center for Economic and Policy Research expressed skepticism over multiple rate reductions, suggesting that only significant economic shifts, such as a collapse in the AI sector or new tariffs by President Donald Trump, would prompt further cuts. Federal Reserve Chair Jerome Powell, currently facing political and legislative scrutiny, conveyed cautious optimism at the press briefing. He noted improved growth forecasts and stabilization signals in some labor market data. Despite a slight drop in the jobless rate, the labor market experiences slow hiring and minimal layoffs, while inflation remains a concern at nearly 3 percent, exceeding the Fed's 2 percent target. Powell emphasized that the impact of tariffs on goods prices might peak and decline, barring new significant tariff increases, o ver the coming months.