The Federal Reserve kept interest rates unchanged as expected but downgraded its economic outlook, citing slower growth and higher inflation due to Trump’s tariffs. Wall Street staged a relief rally after Fed Chair Jerome Powell downplayed inflation concerns.

The Federal Reserve voted to keep the base interest rate flat for the second time this year, hoping to tamp down inflation that has remained stubbornly high.

Wall Street's main indexes rose on Wednesday ahead of the Federal Reserve's widely anticipated monetary policy decision, at a time when worries linger about trade policies and their impact on the economy.