Wall Street rallies after Fed keeps rates unchanged

U.S. stocks surged on Wednesday after the Federal Reserve, as expected, decided to keep interest rates steady. Both the central bank and investors are closely monitoring the impact of President Donald Trump's tariff policies on the economy and inflation.

The Fed maintained its benchmark overnight interest rate in the 4.25%-4.50% range and signaled that two quarter-point rate cuts are likely later this year, consistent with its forecast from three months ago. Additionally, the central bank projected slower economic growth and higher inflation.