The U.S. Federal Reserve has opted to maintain current interest rates, citing a recent lack of progress in bringing inflation down to its 2% target. Following a two-day policy meeting, officials indicated that while the economy remains robust and unemployment stays low, price pressures in the service sector continue to pose a challenge. The decision reflects a cautious approach by the central bank, which seeks to balance the risk of reigniting inflation against the possibility of a sharp economic slowdown. Market observers are now recalibrating expectations for rate cuts, with many shifting their forecasts to later in the year. Federal Reserve Chair Jerome Powell stated that the committee requires 'greater confidence' before adjusting policy, emphasizing a commitment to long-term price stability.