Despite pressure from President Donald Trump to lower interest rates, the Federal Reserve on Wednesday left its benchmark rate unchanged.

The central bank maintained its target range for the federal funds rate at 4.25% to 4.50%—1 percentage point lower than a year ago, when rates reached a 23-year high.

The decision followed a two-day meeting to assess the health of the U.S. economy.

In a statement, the Fed said it is “attentive to the risks to both sides of its dual mandate” and believes the chances of both higher unemployment and rising inflation have increased.

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Fed Chair Jerome Powell cited uncertainty stemming from Trump’s tariff policies, warning that sustained tariff increases could drive up inflation, slow economic growth and raise unemployment.

At the same time, Powell pointed to signs of continued strength in the economy. He said the U.S. is “growing at a solid pace,” with a strong labor market and inflation running slightly above 2%.

“It’s an economy that has been resilient,” Powell noted.

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