The Federal Reserve announced Wednesday afternoon that it will not change interest rates, citing economic uncertainties related to tariffs despite pressure from President Donald Trump to lower borrowing costs."The risks of higher unemployment and higher inflation appear to have risen, and we believe that the current stance of monetary policy leaves us well-positioned to respond in a timely way to potential economic developments," Federal Reserve Chairman Jerome Powell said.Trump has been urging the central bank to lower rates, citing falling inflation. "You're not supposed to criticize the Fed, you're supposed to let him do his own thing. But I know much more than he does about interest rates, believe me," Trump said.Powell attributed the central bank's cautious approach to the president's trade policies. "There's so much uncertainty about the scale, scope, timing and persistence of the, of the tariffs," he said.On Capitol Hill, Treasury Secretary Scott Bessent confirmed he will meet with Chinese officials this week in Switzerland, marking the first formal trade talks since tariffs increased to as high as 145% on some imports. When asked if the negotiations were considered advanced, Bessent replied, "As I said, on Saturday we will begin, which I believe is the opposite of advanced."Trump stated Wednesday that he would not lower tariffs against China ahead of the talks Saturday. The Federal Reserve is navigating a challenging path between cushioning the economy against slowdown risks and managing any tariff-fueled inflation pressures.The federal interest rate has not changed yet in 2025. Historical data shows that rates peaked at just over 19% in 1981 and have since gradually decreased, reaching more than 6.5% in the last 25 years. Rates are currently about as high as they have been since 2006, with the current federal interest rate at 4.3%.