The US Federal Reserve decided on Wednesday to keep interest rates unchanged in its first major decision under President Donald Trump’s second term.

This move is expected to create some tension between the central bank and the newly inaugurated president, who has argued that he should have some influence over Fed policy.

The Federal Reserve stated that the interest rate would remain in the 4.25-4.50% range, noting that inflation remains “somewhat elevated, and economic outlook is uncertain.”

The announcement comes amid the impact of China’s DeepSeek, which has affected US markets, triggering losses for several key corporations in America, including Nvidia.

The Fed’s statement did not include the language from the December statement that inflation had made progress toward the 2 percent objective, according to a Reuters report.

Regarding the unemployment rate, the Federal Reserve noted that it has stabilized at a low level and that labor market conditions remain “solid.”

Meanwhile, the Jerome Powell-led agency emphasized that achieving employment and inflation goals are “roughly in balance” and mentioned that economic activity in the United States continues to expand at a solid pace.

The Fed also stated that the vote to keep the rates steady was “unanimous,” meaning that all 12 Federal Reserve officials who voted at this month’s meeting were in agreement. Notably, at last month’s meeting, Cleveland Fed President Beth Hammack had deviated from the other 11 voters by supporting a rate pause rather than a quarter-point cut, which ultimately took place.

However, Hammack did not vote at this meeting and will serve as an alternate voter for the rest of the year.