02:22 PM EDT, 03/19/2025 (MT Newswires) -- The Federal Reserve on Wednesday held its benchmark lending rate steady for a second straight meeting and said that uncertainty regarding the economic outlook has moved higher.

The Federal Open Market Committee left interest rates in the range of 4.25% to 4.50%, in line with Wall Street's expectations. Policymakers reduced rates by 50 basis points in September and by 25 basis points each in November and December.

"Uncertainty around the economic outlook has increased," the FOMC said Wednesday following its two-day meeting. Policymakers reiterated their recent remarks that inflation remained "somewhat elevated" and that economic activity has continued to expand at a solid rate.

Official data released earlier this month showed that US consumer inflation decelerated more than expected in February, while producer prices were flat, marking a slowdown sequentially.

The Trump administration has recently proposed or implemented tariff on its key trading partners, including China, Canada and the European Union, which have all announced retaliatory tariffs.

"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the FOMC said Wednesday, reiterating comments made in January.

Starting next month, the FOMC will lower the monthly redemption cap on Treasury securities to $5 billion from $25 billion. It will maintain the monthly cap on agency debt and agency mortgage-backed securities at $35 billion, according to the statement.

The next FOMC meeting is scheduled for May 6-7.