The Federal Reserve left its target range for the federal funds rate unchanged at 4.25%–4.50%, as widely expected. Chair Jerome Powell said the committee is “well positioned to wait and learn more” about the economy, citing uncertainty from both the Trump administration’s tariffs and escalating tensions in the Middle East. Updated projections still point to two quarter-point cuts later in 2025. U.S. stocks showed a muted reaction: the Dow Jones Industrial Average slipped 0.10% to 42,171.66, the S&P 500 edged down 0.03% to 5,980.87, while the Nasdaq Composite added 0.13% to 19,546.27. The 10-year Treasury yield ticked up to 4.395%. West Texas Intermediate crude settled at $75.15 a barrel as traders assessed potential supply disruptions stemming from the region. In Europe, the Stoxx 600 dropped 0.36%, with healthcare shares weighing on the benchmark and defense names advancing. Futures signal a softer open for Japan’s Nikkei 225 and Hong Kong’s Hang Seng, and Asian currencies were broadly steady as investors digest the Fed’s hawkish tone. Caution remains elevated after a sixth day of hostilities between Israel and Iran. President Donald Trump said he has not decided whether the United States will join Israeli strikes, prompting concerns that a broader conflict could threaten shipments through the Strait of Hormuz and complicate the Fed’s inflation outlook.